Tech giants replace banks as the number one tax enemy

As the Government fights to keep bankers on side, it seems the era of banker bashing could be over. Although the impact of the 2008 financial crisis is still being felt – the taxpayer will own 62pc of bailed-out NatWest until at last 2026, almost two decades after it nearly brought down Britain’s entire financial system – the banks were not the cause of this crisis, and have been instrumental in getting lifeline loans out to businesses.

Miles Celic, who runs finance lobby group TheCityUK, agrees that the mood has shifted in recent months “as the UK embarks on this new chapter in our history”.

“Engagement and meetings have never been an issue, it’s about seeing the enhanced tone, tangible action and support which can improve the UK’s international competitiveness,” he explains.

“Brexit has sucked up a lot of oxygen in the past three years, but now they have the space, it’s good to see government and regulators really focusing on how we drive forward this vital part of the economy.”

In the banking industry’s place comes the new tax enemy and Treasury target: big technology companies. For example Amazon, which has seen huge demand during the pandemic, paid less than £300m in UK tax in 2019 after logging revenues of almost £14bn, according to its latest accounts filed last September. In 2020, its UK revenues surged to hit $26.4bn (£19bn), the fastest level of growth in all of its major markets.