UK Finance, a banking lobby group representing Lloyds, JP Morgan and Revolut, stands accused of cherry-picking data to mislead the British government ahead of a planned tax rise on banks.
The group commissioned an annual report that tallies taxes paid by large banks, including corporation tax, social security contributions, VAT and bank-specific levies. The lobby group shared figures with John Healey, the UK's Secretary of State for Defence, arguing that a tax rise would leave London less competitive than rival financial hubs.
Campaigners dispute the claim. They say UK Finance's figures are misleading because the analysis does not include Paris, a major rival financial centre. By omitting Paris from the comparison, the lobby group's data cannot substantiate its assertion that London would become uncompetitive.
The dispute centres on whether London truly faces the highest tax burden among major financial centres. UK Finance's methodology counts multiple tax streams that large banks pay. The absence of Paris data in their comparison undermines their argument that a tax rise would damage London's standing relative to other European capitals.
The accusation of data cherry-picking comes as the government prepares to announce budget measures affecting the banking sector. The timing suggests UK Finance was attempting to influence government policy by providing what campaigners characterize as incomplete and skewed analysis.
UK Finance has not yet responded publicly to the allegation of selective data use.