Further taxes on the UK's financial sector would be an "own goal", the head of the Confederation of British Industry (CBI) is set to tell the Chancellor ahead of the forthcoming Budget.
Rain Newton-Smith, chief executive of the business group, will urge John Healey to give "business breathing space" in his first Budget during a speech in London on Wednesday.
Warning Amid Tax Rise Speculation
The warning comes amid mounting speculation that the Government is planning to raise the tax rate applied to banks' profits.
Mr Healey is reportedly weighing up an increase to the surcharge on bank profits from 3% to 8%, effectively reversing a tax reduction for the sector introduced by former chancellor Jeremy Hunt.
Call to Back Financial Sector Growth
Ms Newton-Smith will address the CBI's London Autumn Reception at the British Museum, calling on the Chancellor to back the growth of the capital's financial sector.
"Our financial services may be centred in London but they support more than 650,000 jobs outside the capital," she will say.
"They add more than £200 billion to our economy every year. They are a great British success story.
"Our financial sector already faces a higher tax burden than other global centres. Adding to that would be an own goal for our competitiveness."
Plea for 'Business Breathing Space'
The trade body chief will also contend that growth stems from "helping struggling sectors, not holding back thriving ones", pressing the Chancellor to foster greater private sector investment.
She will say: "So as we've said to the Chancellor, the Budget next week must be about giving business breathing space and backing wealth creation.
"Because breathing space gives businesses room to invest. To hire. To innovate. To make the decisions that drive growth in every postcode.
"That means Government and business being bold on the practical things that decide whether investment happens here or somewhere else."
