No Relocation Plans Despite Anticipated Tax Changes
A senior executive at HSBC has attempted to dispel speculation that the lender might move its global headquarters out of the UK in response to tax increases anticipated in the upcoming budget. Chief financial officer Pam Kaur stated that there was "no pressure" from shareholders in cornerstone markets like Hong Kong to shift away from London, despite industry warnings that higher levies could drive banking business abroad. Speaking as the bank reported a 32% rise in third-quarter profits to $9.6bn (£7.2bn), Kaur reaffirmed the bank's commitment to its UK domicile, noting that the relocation question is simply not on the table. The chancellor is reportedly planning to target Britain's banks by reversing previous tax cuts on the bank surcharge.
Market Reaction and External Views
Despite the profit increase, HSBC's UK-listed shares fell nearly 6% following the announcement, a drop attributed by Kaur to investor expectations for stronger net interest income forecasts. The results drew criticism from external commentators, with TUC general secretary Paul Nowak arguing that the figures demonstrate banks can comfortably afford higher contributions. Meanwhile, New Economics Foundation economist Abhijay Sood suggested the chancellor should go further by addressing what he termed a stealth subsidy from taxpayers to help fund public services.