A copy of the letter sent by Joanthan Keeling, chief executive of Arden Partners, to the FT:
Dear Sir,
Bank Payroll Tax
As CEO of a quoted stockbroker I am angry to find that the draft BPT legislation appears to capture our firm, and indeed our fellow competitors in the crossfire over the government bailout of the UK banks.
We are not a bank – we do not lend or take deposits, nor have we participated in the mortgage market. We therefore did not benefit from the risk taking that produced the credit crunch, as banks did. It would therefore be wrong to punish us as though we had, and would damage the responsible part of the City.
I am sure that the government’s intention was not to capture all regulated firms in the UK, but this legislation has the potential to damage all. If it stays as drafted, it will be grossly unfair and have negative effects that the government cannot have considered.
We are but one of a number of similar firms who have run our businesses responsibly through what has been one of the most difficult markets conditions since the early seventies. If we had failed, the government would not have helped.
Good stewardship is the key to running a successful business and the proposals as drafted will have a detrimental effect on us and the City in general. The BPT has proved a distraction and staff throughout the City who have worked hard to ensure our survival through the recent difficult times.
The BPT has the potential prompt more firms and talented individuals to leave the City. I am also concerned that there is a potential to give overseas firms a competitive advantage over UK owned and operated businesses.
Jonathan Keeling
Chief Executive Officer Arden Partners plc.
Related links:
Backlash over banker supertax grows – FT
Lex: Bankers’ bonus tax – FT
Lombard: City’s self-interest uncurbed – FT