City giants call for cuts to red tape and taxes

GIANT City firms are set to launch a major lobbying offensive to boost Britain’s financial sector, The Mail on Sunday can reveal.

Groups representing insurers, banks and asset managers will urge the Government to cut red tape and offer low taxes. They also want it to be easier for finance professionals from abroad to work in the UK.

Bank lobby group UK Finance is expected to present Whitehall with its proposals within two months.

The plan is being drawn up with input from other bodies including the Association of British Insurers and the Investment Association.

Industry experts suggested the cap on bankers’ bonuses could be ditched to make the Square Mile more attractive to top talent.

The City offensive comes amid fears that Britain could lose its crown as the global financial centre after leaving the EU.

A trade deal was struck, but no agreement was forged for services – representing 80 per cent of the economy. This makes it tough for UK financial firms to do business in the EU and vice versa.

Vast chunks of derivatives trading has moved from London to New York since the start of the year. Earlier this month, Amsterdam overtook London as Europe’s biggest share trading centre.

Britain hopes to strike an agreement with the EU by next month to arrange future meetings to thrash out a financial services deal.

Finance firms want to accelerate efforts to attract talent and investment to the City. A source said the lobby groups will urge the Government to allow for more ‘flexible’ regulation.