Published: February 19th 2010 - at 3:36 pm

Bankers stay in UK despite threats by City, Tories


by Sunny Hundal    

Well that came as a complete surprise. Despite threats by City bankers and senior Tories such as London’s occasional Mayor Boris Johnson and shadow chancellor George Osborne – they have stayed put.

Boris Johnson in particular railed against the tax on bankers bonuses and the 50% tax rate. He warned that that over 9,000 bankers could move to other countries in Europe, such as Switzerland, that were friendlier to bankers.

However, a report by Channel 4 finds that just 1,079 British citizens migrated to Switzerland to work in the financial services industry in 2009. Of those, approximately two thirds work in IT and related disciplines.

Watch

The report adds: “But a fall of seven per cent is in line with the drop in bankers from around the world moving to Switzerland: 7.7 per cent. And the fact that the trend is downwards shows that tax increases have not yet triggered anything resembling mass exodus.”

A fund manager called it “posturing”.

Wonder what Boris will say now.


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About the author
Sunny Hundal is editor of LC. Also: on Twitter, at Pickled Politics and Guardian CIF.
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Reader comments


The financial markets have already priced in a Tory victory. So, presumably, have the people that work in them.

Anyway, have you ever *been* to Zurich?

Plus, you have noticed that the 50p top rate hasn’t actually been introduced yet?

“The financial markets have already priced in a Tory victory. So, presumably, have the people that work in them.”

I’ve never found this a particularly convincing argument, but so what if they have? While the Tories wouldn’t have announced the 50p rate, they’re not getting rid of it either (at least not straight away, and they won’t put a date on it). Similarly the bonus tax is time-limited. So it shouldn’t make a difference to banker flight which colour government is elected.

#1 I haven’t been to Zurich. I was asked by Google to apply for a job heading a team there but I decided not to apply. Why? Well my kids are at secondary school (one about to do GCSEs, the other about to do A2s) and I didn’t want to move them. The manager from Google spent a long time trying to persuade me that I could commute (no chance) and then he tried to persuade me how good the international schools are in Zurich. But to be honest, my family mean more to me than to take them to another country at such a critical time in their lives. (Yeah, I am such a bleeding heart liberal.)

Remember, this is not like “Auf Wiedersehen Pet” where not emigrating means the dole and financial ruination. The bankers have clearly looked at their options, weighed up the benefits they get in the UK verses the supposed pots of gold in Zurich and have decided that it is better to stay here. There’s more to life than pots of gold.

However, considering my reasons to stay (education and, more importantly, the NHS) and that a Cameron victory would threaten the schools and hospitals that I depend on, I am beginning to question my decision not to have taken up the offer from Google.

You mean the bankers have not given up their mansions in Surrey, and their wives membership at The Royal Opera House and Wimbledon have not been given back? I am shocked, SHOCKED….

Who would have thought the dishonest tories would be scaremongering again.

Tories are scaremongering scum

7. Donut Hinge Party

Yeah, but it’s not as simple to duck tax as just flying the coop. You have to sell everything you own in the country. Just ask Robert Gaines-Cooper.

http://www.ft.com/cms/s/0/3f990380-1cf6-11df-aef7-00144feab49a.html

9. Donut Hinge Party

That’ll be great, and in a minimum of twelve years time, when you finally stop paying taxes to the UK because you’re a Swiss citizen, you can put that T-shirt in your Zurich flat, having divested yourself of any UK properties.

http://www.isyours.com/e/immigration/citizenship/index.html

I’m already a Swiss German Jew so all bases are covered.

11. J Alfred Prufrock

@7 and 9 DHP

So in that case, it was clearly a foul piece of scare-mongering on the right-wing commentators from the start then, all this bullshit that our oh-so precious darling bankers will flee the country due to having to pay [gasp] taxes.

Nothing about the duplicity of the Conservatives shocks anymore.


Reactions: Twitter, blogs
  1. House Of Twits

  2. topsy_top20k

    Report: Bankers stay in UK despite threats by City and Tories http://bit.ly/cJEzJa

  3. Allan Siegel

    RT @libcon: Report: Bankers stay in UK despite threats by City and Tories http://bit.ly/cJEzJa

  4. House Of Twits

  5. Stuart Pearce

    RT @libcon: Report: Bankers stay in UK despite threats by City and Tories http://bit.ly/cJEzJa

  6. Political Animal

    RT @libcon: Report: Bankers stay in UK despite threats by City and Tories http://bit.ly/cJEzJa

  7. sunny hundal

    Bankers stay in UK despite threats by City and Tories http://bit.ly/cJEzJa – what will Boris say now??

  8. Dave Edwards

    RT: @libcon Report: Bankers stay in UK despite threats by City and Tories http://bit.ly/cJEzJa Because no one else will employ these losers

  9. Paulo Coimbra

    RT @libcon: Report: Bankers stay in UK despite threats by City and Tories http://bit.ly/cJEzJa

  10. Michael Hanley

    RT @pickledpolitics: Bankers stay in UK despite threats by City and Tories http://bit.ly/cJEzJa – what will Boris say now??

  11. Alex Ross

    Bankers stay in UK despite threats by City, Tories http://bit.ly/ajfsN6





Sorry, the comment form is closed at this time.

 
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