A banking lobby group has faced accusations of misrepresenting tax data to influence the British government ahead of a budget that includes a tax rise for banks.
UK Finance, which represents banks including Lloyds, JP Morgan and Revolut, commissioned an annual report comparing the total tax burden on large banks across financial centres. The report tallies corporation tax, social security contributions, VAT and bank-specific levies.
The lobby group shared figures with John Healey, the Chancellor, claiming that a planned bank tax increase would leave London less competitive than rival financial hubs. Campaigners and observers have challenged this framing as misleading.
The central criticism is that UK Finance's comparison excluded Paris, a major rival financial centre. By omitting Paris from the analysis, critics say the lobby group cherry-picked data to support a predetermined conclusion that London faces uniquely high tax burdens.
The tax increase is scheduled to be announced in next week's budget. The row reflects broader tensions between the banking sector and the government over the cost of financial regulation and taxation in the post-2008 crisis era.
UK Finance did not immediately respond to requests for comment on the cherry-picking allegations. The dispute underscores how both industry and government rely on competing datasets to frame policy debates, and how the selective presentation of comparable data can distort rather than clarify genuine competitive disadvantages or advantages.