Financial services should remain VAT-free. The bank levy and surcharge should be phased out over time. And stamp duty on UK shares should be abolished, says Chris Hayward

A month from now, the Chancellor faces a selection of stark choices. The easiest among them should be whether to supercharge the UK’s financial services sector – or risk letting the engine of our economy stall by stymying growth through more business taxation.

The Square Mile alone generates more than £110bn in annual economic output. It supports 678,000 jobs – 25 per cent higher than before the pandemic. This isn’t just a London success story; this is the national success story; one that fuels growth through investment, innovation and opportunity in every nation and region of the UK

The financial services sector makes up over 12 per cent of total UK tax receipts: more than the government’s annual education budget and more than half the health budget. Yet despite its strength, a £115bn investment gap continues to hold back UK growth. Bridging that gap must be the defining mission of this government.

Over the past fortnight, the City of London Corporation has proven to be the government’s partner of choice in crafting financial services policy. The newly operational........

© City A.M.