# London takes aim at New York with five-year financial plan
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-09-07
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: London Financial Lobby Urges Tax Cuts and Visa Easing
Meta Description: TheCityUK blueprint urges UK to cut bank taxes, ease hiring rules to outdo New York as top global financial centre post-Brexit.
URL: https://financedigest.com/london-takes-aim-at-new-york-with-five-year-financial-planhtml

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By Huw Jones

LONDON (Reuters) – Britain needs to ease taxes on banks and make it easier to hire staff from abroad, its [financial](https://www.financedigest.com/financial-literacy-what-is-financial-literacy-and-why-is-it-important.html) and professional services lobby said in a blueprint to help London unseat New York as the world’s top [international](https://www.financedigest.com/unionpayquickpass-sponsorship-programreduces-certification-costs-for-manufacturers.html) financial centre within five years.

The strategy paper on Tuesday from TheCityUK reiterated some ideas already aired in government-backed reports and elsewhere in recent months as the City of London looks to recoup ground lost following Britain’s departure from the EU.

By some metrics, the UK is losing ground: London is currently slipping further [behind New York each year](https://www.financedigest.com/companies-that-dont-upgrade-their-financial-processes-this-year-will-get-left-behind.html "Companies that don’t upgrade their financial processes this year will get left behind") while other centres are strengthening,” the paper said.

The U.S. financial [capital overtook London](https://www.financedigest.com/london-the-capital-of-cyber-crime-in-the-uk.html "London: the capital of cyber crime in the UK") in 2018 in a leading annual survey, it said, adding that New York dominated in stock market listings.

The UK therefore needs to adopt a relentless focus on strengthening its [international competitiveness to win back the prize of being the world’s leading international financial](https://www.financedigest.com/the-hidden-financial-woes-of-international-students-heading-for-the-uk.html "The Hidden Financial Woes of International Students Heading for the UK") centre,” TheCityUK lobby group, which promotes the wider financial sector abroad, paper added in the paper.

Britain’s departure from the European Union effectively [closed London off from its biggest financial](https://www.financedigest.com/fast-track-financial-close.html "FAST-TRACK FINANCIAL CLOSE") services customer, adding further pressure to catch up.

The finance ministry has already [set out reforms to make London’s](https://www.financedigest.com/oneweb-eutelsat-set-for-secondary-london-listing-the-times.html "OneWeb-Eutelsat set for secondary London listing – The Times") capital market more competitive, and TheCityUK set a five-year target for London to “out-compete its rivals” by amending tax, visa and other rules.

Becoming the global hub for [financial data](https://www.financedigest.com/how-data-governance-as-a-service-can-transform-the-financial-sector.html "How Data Governance-as-a-Service can transform the financial sector"), sustainability investing and investment and risk management will also be crucial in helping [Britain](https://www.financedigest.com/james-cleverly-to-remain-uk-foreign-minister-statement.html) overtake New York, TheCityUK said.

The total tax [rate for a London bank](https://www.financedigest.com/bank-of-englands-mann-doubles-down-on-backing-for-rate-hikes.html "Bank of England’s Mann doubles down on backing for rate hikes") is 46.5%, 13% higher than a New York based bank, it added.

But persuading government to cut taxes on [finance as it mends a hole in the economy from COVID may be challenging](https://www.financedigest.com/how-finance-leaders-can-turn-the-inflation-challenge-into-opportunity.html "How finance leaders can turn the inflation challenge into opportunity"), as will having an open door on hiring given the Brexit referendum pledged to crack down on high levels of international mobility.

The single most important issue for [financial firms](https://www.financedigest.com/top-north-east-financial-adviser-firm-talks-corporation-tax.html "Top North East financial adviser firm talks corporation tax") is being able to hire globally, TheCityUK CEO Miles Celic said.

In conversations we have had with government, I think that is something that is [absolutely understood,” he told reporters](https://www.financedigest.com/the-last-mile-of-statutory-reporting-is-absolutely-crucial-heres-how-one-global-company-does-it-with-onesource.html "The last mile of statutory reporting is absolutely crucial. Here’s how one global company does it with ONESOURCE").

(Reporting by Huw Jones; Editing by Alexander Smith)


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