Is London really the most-taxed city? Banks accused of cherrypicking data
News Source
β’Sat, 24 Oct 2026 11:00:31 GMT
π° What Happened
A banking lobby group says London is the most heavily taxed place for banks. Campaigners say its figures leave out London's biggest rival, Paris, and are misleading.
UK Finance, which speaks for banks like Lloyds and JP Morgan, paid for a PwC report. It puts London's total tax rate at 46.2 percent, against 27.9 percent in New York. The group sent the numbers to the chancellor, John Healey.
π The Backstory
The report lands just before next week's budget, when the government is expected to raise taxes on banks. UK Finance warns that higher bills could push jobs and business to other cities.
The Guardian asked accountants to run the same sums for Paris and got between 51.6 and 57.3 percent, higher than London. UK Finance says it could not build a fair comparison for Paris. Unions and campaign groups say the omission was deliberate.
π― Why It Matters
Bank taxes decide how much money the government has for public services. Voters should know whether the warnings about banks leaving are based on fair numbers.
A banking lobby group says London is the most heavily taxed place for banks. Campaigners say its figures leave out London's biggest rival, Paris, and are misleading.
UK Finance, which speaks for banks like Lloyds and JP Morgan, paid for a PwC report. It puts London's total tax rate at 46.2 percent, against 27.9 percent in New York. The group sent the numbers to the chancellor, John Healey.
The report lands just before next week's budget, when the government is expected to raise taxes on banks. UK Finance warns that higher bills could push jobs and business to other cities.
The Guardian asked accountants to run the same sums for Paris and got between 51.6 and 57.3 percent, higher than London. UK Finance says it could not build a fair comparison for Paris. Unions and campaign groups say the omission was deliberate.
Bank taxes decide how much money the government has for public services. Voters should know whether the warnings about banks leaving are based on fair numbers.