Improving competition in trading services

Today, the Economic Secretary to the Treasury, Ed Balls MP, brought representatives from the European Commission together with leading representatives of London's financial sector, while also announcing the implementation of tax measures to boost the competitiveness of the City of London.

The measures announced today will modernise the tax system to remove obstacles to competition and expand choice in trading financial instruments in the UK. They will allow firms to benefit from the new opportunities offered by liberalisation of financial regulation in the European Union, and specifically from the introduction of the Markets in Financial Instruments Directive (MiFID).

The announcement coincided with an informal meeting of the High Level Group on City competitiveness, during which senior figures from the UK-based financial services sector met European Commissioners Charlie McCreevy and Neelie Kroes to discuss the future direction of financial services policy in Europe, including developments in trading securities.

Speaking after the meeting, Ed Balls said: "The opening up of financial markets in the EU is a great opportunity for the UK. I was grateful for the positive discussion this morning with City leaders and Commissioners McCreevy and Kroes on how we can, together, address some of the key policy challenges facing European financial services in the coming months. With the measures I am announcing today, the structure of the UK tax regime will reinforce the more open and competitive trading environment that we are creating in Europe."