James Forsyth

London will soon be the least competitive major financial centre in the world when it comes to personal taxation for top bankers

London will soon be the least competitive major financial centre in the world when it comes to personal taxation for top bankers
Text settings
Comments

After April 6th senior bankers and top hedge funder workers who are based in London will pay a greater proportion of their earnings in income tax and national insurance than their counterparts in any other major financial centre, reports The Wall Street Journal Europe today. This research shows just how damaging Labour’s various soak the rich taxes will be to London’s competitiveness as a global financial centre.

Once the 50p rate and the increased national insurance rate kick in, a banker earning more than half a million pounds a year would be paying less in personal taxes in any other major financial venue.  Now, the bankers might be the subject of largely justified public ire at the moment. But as Boris Johnson reminded us during Andrew Rawnsley’s documentary on Cameron tonight they pay an awful lot in tax. If more and more of them start being based elsewhere, then the rest of us are going to end up paying more tax as the politicians try to find a way to plug the gap.

Written byJames Forsyth

James Forsyth is Political Editor of the Spectator. He is also a columnist in The Sun.

Comments
Topics in this articleSociety