CityUK warns on new bank surcharges, backs EU membership
LONDON (Reuters) - It may be too late to change course once the harmful impact of extra bank taxes on Britain's long-term competitiveness becomes clear, according to John McFarlane, the new chairman of financial services lobby group CityUK.
McFarlane, who is also chairman of Barclays , reiterated that a "clear majority" of CityUK members want to stay in a reformed EU as Prime Minister David Cameron seeks changes to the bloc ahead of a UK referendum on whether to remain a member of the EU.
A new surcharge on bank profits being introduced next year and existing levies on big lenders pose longer-term threats to Britain's attractiveness, McFarlane said in excerpts of a speech released ahead of the group's annual dinner on Wednesday.
"They may have negative implications over the longer-term that we risk realising only when it is too late," he added.
He called on the government to remove hurdles like visa restrictions that could crimp Britain's ability to compete in financial services globally.
He urged the government to make Britain open to the brightest global talent, a reference to business concerns that curbs on foreign workers shrink the pool of available employees
"London is the world's leading financial centre and TheCityUK's priority is to keep it that way. We need to advance our strengths and eliminate disadvantages," McFarlane said.
The group's membership is drawn from banking, insurance, asset management, law, accountancy and market infrastructure companies and lobbies on behalf of the broader financial sector in Britain and abroad.
(Reporting by Huw Jones; Editing by Keith Weir)
