Dame Jane Fraser, the chief executive of Citigroup, has said she is “worried” about the UK’s tax rate on banks, which she put at about 48 per cent in London against 27 per cent in New York, warning that further rises could jeopardise investment.
Speaking on a visit to London, Fraser said the UK rate was higher than in New York, Dublin, Frankfurt and Paris. “Money votes with its feet,” she said.
Fraser, who runs the third-largest US bank, put Dublin’s rate at around 28 to 29 per cent.
“It makes it a tougher decision,” she said. “It’s already one of the most expensive centres in the world. Your clients have a lot of choices where things get booked. We have to make choices to where things get booked. If the taxes go up even higher, then that makes it an easier decision not to book it in London.”
Asked whether she was concerned about a new bank tax under Andy Burnham’s government, Fraser said: “Where I get concerned about it is London is such an important centre, a financial centre around the world. The world needs London to work well and to continue to prosper and innovate.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
