Wednesday, January 06, 2010

Bluff called: banks drop threats to quit UK

More evidence continues to emerge, after our earlier blogs on this subject here and here, that all that huffing and puffing by the bankers last year - 'we'll relocate if you tax us too hard' - that calling their bluff has worked a treat. Now we have the Guardian:

"Mark Bourne, head of City agency at King Sturge, says threats of an exodus are not being carried out. "We put it down to sabre rattling by some of the powerful men in banking who have got a voice. But London is linked to the global recovery and that's too important for banks to move away from," he said.

"We expect any effect (of institutions leaving) will be negligible or marginal."

It's a lesson politicians would do well to remember, for years into the future. Tax them, and the sky won't fall in. Whatever they say.

There's more.

"the 2010 outlook stresses that London's rise will not be replicated elsewhere, and the gap between the capital and the rest of the country will widen."

Which makes the London Mayor's request for the rest of Britain to subsidise the City even more quite repellent.


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