Goldman chief delivers warning to Reeves over bank tax hikes

The brag of Goldman Sachs has urged Rachel Reeves not to summation the fiscal load connected the banking assemblage amid manufacture concerns that it volition beryllium targeted for steep taxation hikes successful adjacent month’s Budget.

Sky News has learnt that David Solomon delivered the informing successful a backstage gathering with the chancellor past week, erstwhile helium is said to person told her that hitting banks with higher taxes would beryllium damaging to Britain's wider economical maturation prospects.

The gathering came 7 weeks up of a important Budget for the Labour government, which is racing to find ways to plug a fiscal spread estimated astatine betwixt £20bn and £30bn.

Goldman Sachs disclosed successful its latest yearly net connection that it paid much than $529m of corp taxation successful the UK past year.

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It reported astir $4.3bn of nett connected revenues of $10.7bn successful Britain successful 2024.

The Wall Street elephantine employs astir 3,500 radical successful Britain.

Because of its size, Goldman is liable to wage the UK Bank Levy, which is efficaciously a taxation connected its British equilibrium expanse and liabilities.

It besides pays the 3% corp taxation surcharge levied connected each banks registering profits of much than £100m.

The surcharge was introduced successful 2016 astatine a complaint of 8%, earlier being chopped to 3% 7 years later.

Major UK and planetary banks person been lobbying successful caller weeks against a reversal of that reduction.

The banking manufacture is susceptible to being deed with further taxes adjacent period some due to the fact that of the size of the fiscal situation facing Ms Reeves and the information that the assemblage is generating immoderate of its biggest profits since the 2008 fiscal crisis.

Mr Solomon's plea to the chancellor past week is not the archetypal clip this twelvemonth that helium has raised the implications of a rising UK taxation burden.

In an interrogation with Sky News presenter Wilfred Frost earlier this year, helium said that London's presumption arsenic 1 of the world's starring fiscal centres was "fragile".

"London continues to beryllium an important fiscal centre, but due to the fact that of Brexit, due to the fact that of the mode the world's evolving, the endowment that was much centred present is much mobile," helium said successful July.

"We arsenic a steadfast person galore much radical connected the continent.

"Policy matters, incentives matter."

Mr Solomon added that helium had been "encouraged by immoderate of what the existent authorities is talking astir successful presumption of supporting concern and trying to enactment a much growth-oriented agenda".

"But if you don't acceptable a argumentation that keeps endowment here, that encourages superior enactment here, I deliberation implicit clip you hazard that."

The Treasury did not supply an authoritative readout of past week's treatment betwixt Ms Reeves and Mr Solomon, but did accidental successful narration to a abstracted gathering she held with Jamie Dimon, the JP Morgan president and main executive, that helium had antecedently welcomed fiscal services assemblage reforms successful the UK.

Spokespeople for Goldman Sachs and the Treasury some declined to comment.