HSBC says ‘no pressure’ to move HQ out of UK despite prospect of higher bank taxes

As John Healey’s budget decision looms, lender reports 32% rise in profits

A top executive at HSBC has tried to quash speculation that the bank could move its headquarters out of the UK over tax increases expected to be announced in Wednesday’s budget.

HSBC’s chief financial officer, Pam Kaur, said there was “no pressure”, particularly from shareholders in its cornerstone Hong Kong market, to shift out of London despite lobbyists warning higher tax bills could drive big banks’ business abroad.

HSBC on Tuesday revealed a 32% rise in third-quarter profits to $9.6bn (£7.2bn), alongside plans to give $2.7bn to shareholders through dividends and buybacks.

Lobby groups have for months warned that banks could shift business and jobs to rival hubs if threatened with higher bills, with the JP Morgan chief executive, Jamie Dimon, saying he could even scrap plans for a new £3bn London headquarters if Britain became “hostile” to banks.

A handful of wealthy businesspeople have already said they are leaving the UK, with some criticising Labour’s tax policies.

The Guardian revealed earlier this month that the chancellor, John Healey, was planning to tax Britain’s banks in Wednesday’s budget. He is likely to reverse the previous Conservative government’s cuts to the bank surcharge.

“Irrespective of what happens on taxes, we are there to support our customers, and that is what we will do,” she told journalists during a media call on Tuesday. “We are very comfortable, we are domiciled in the UK and we remain in the UK. So that question is just not on the table,” Kaur said.