To ask Her Majesty's Government what plans they have, if any, to ensure that the City of London remains a truly competitive, global financial hub after Brexit; and if they do, whether such plans would involve cuts to corporation tax.
Answered on
2 August 2018
The UK is home to the world’s preeminent financial centre and the government is committed to maintaining and enhancing this position post-Brexit. In addition to our natural advantages, such as a central time zone and the English language, we have strengths across all the major sectors – banking, asset management, and insurance – alongside a globally respected regulatory system, and world-class legal and professional services.
Alongside these strengths, we also already have a competitive tax offer. The UK corporation tax rate is the lowest in the G20 at just 19 per cent, and is legislated to fall to 17 per cent in 2020. All together, these factors have made the City of London the world’s leading financial centre and will continue to do so.
As the Chancellor of the Exchequer set out in his Mansion House speech in June, the government has a long-term vision for the future of UK financial services, based on ensuring the continued innovation, resilience, and openness of the sector. This includes strengthening the UK’s already world-leading positions in the markets of the future, whether in Fintech, green and sustainable finance, or rupee and renminbi products.