Brexit Britain’s financial services boom as minister hints at slashing taxes to make city

Laura Kuenssberg grills Rishi Sunak on taxation rise

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John Glen promised that the key industry for the UK will benefit from “competitive tax rates” ahead of the next Budget on 27 October. Speaking to the Financial Times, the City Minister would not be drawn further.

But he added: “To be competitive, we have to have competitive tax rates and that’s what’s on the chancellor’s mind at the moment.”

Currently, the sector is subject to an eight percent surcharge.

It was first introduced in 2015 and has been accused of holding the industry – and especially the City of London – back.

Chancellor Rishi Sunak has previously said he would review in order to maintain London’s position in the global market post-Brexit.

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Mr Glen also said that the cap on bankers’ bonuses, introduced by the EU after the financial crash in 2008, will be kept “under review”.

Under the rules banker bonuses’ cannot exceed 100 percent of their salary in most cases.

They can reach a maximum of double their salary with explicit shareholder approval.

If rules capping these were scrapped – it could lure bankers in search of bumper paychecks to the UK.

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And it would also help keep high-flying bankers who might have been tempted to swap the UK for foreign capitals such as Frankfurt or Paris – where the rules will still apply.

News of possible changes led the MP to reveal that he was optimistic about the post-Brexit future of the UK’s financial services.

He pointed to a “booming” London following “the best year since 2014 in terms of equity raising and IPOs”.

He said: “What I want is an efficient and effective marketplace for financial services in the context of the global marketplace.”

And while Global Britain is clearly forging its own path, Mr Glen vowed to strike a financial services deal with the US.

He accused the EU of continuing to show a lack of willingness to grant “equivalence” to UK markets.

Despite a “memorandum of understanding” being provisionally agreed in March this year allowing for engagement on financial industry matters, no “equivalence” deal for the sector has been signed.

Mr Glen said there was no sign of any movement by the European Commission on a finance deal stressing that it was “a matter for them”.

He stressed: “What I want is an efficient and effective marketplace for financial services in the context of the global marketplace.”

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