A difficult Budget for difficult times

“This is a difficult Budget for difficult times.

“The increase in ISA limits will encourage people to save for their financial futures.

“The Chancellor’s emphasis on maintaining financial stability is the right one and key to resolving the high public borrowing requirements is getting the financial markets working better.

“The banks are committed to carrying out their responsibilities in supporting businesses and individuals through the downturn. We will continue to work closely with the Government and other organisations to bring this about.  With most other mortgage lenders exiting the market, the banks have therefore committed to increasing the supply of mortgages.

“The reduction in pension tax relief and the increase in income tax for higher earners will obviously affect many who work in the City.

“Another measure with particular relevance to the City is the package of reforms on the taxation of foreign profits.  Banks are major international organisations and the industry remains one of the most significant contributors to the economy. It is important that the UK remains the international financial business centre of choice, given the key contribution this can make to future prosperity, and so these tax changes must be implemented with very considerable care.

“The Chancellor also announced that there will be a white paper in the next few weeks setting out the details of the commitments that were given at the G20 on financial matters and on the changes to banking regulation which the authorities have been consulting on for some time. This white paper will be an important one for the industry and needs to create the right balance: restoring confidence and trust in the UK financial sector whilst reinforcing its ability to compete in the global market place.”

For further information, please contact:
Press Office (020 7216 8989 )
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Notes to Editors:

The Chancellor of the Exchequer made his Budget statement in the House of Commons at 12.30pm today.

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