Is Scotland really likely to welcome many French financiers after the income tax hike?

The French are coming to the City of London; fleeing new high rates of income tax for the softer regime in the UK. Can Scotland also benefit?

It seems unlikely, and – depending on your perspective – this could be viewed as a positive. The 75% tax rate in France only affects the very high earners; those people bringing in over €1m. However, if they earn more than €71k, the tax rate also increases to 44%, up from 41%.

This means that the vast majority of people working in revenue generating financial services roles in France would be affected. It may prompt some of them to move. However, they’re only likely to target the City because their earning potential is greater and career options more varied.

Scotland doesn’t really have the same selling points. The operational roles based north of the border don’t offer high enough salaries to make a move worthwhile, and the fund management and corporate banking roles that do pay well are either stagnant or contracting.

One financial services recruiter in Edinburgh tells us: “It’s rare that we receive the CV from French financiers, and this situation hasn’t changed in the last two months.”