![\"Sandy](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2026\/05\/Sandy-Begbie-at-SFE-HQ.png\")
Financial services leader Sandy Begbie has urged the new UK government to avoid introducing new taxes and regulations that will undermine progress being made in the sector.<\/p>\n
Mr Begbie, chief executive of Scottish Financial Enterprise, will publish an update this week on the organisation\u2019s three-year-old Growth Strategy which will show the sector\u2019s employment and exports expanding.<\/p>\n
Headcount growth is particularly strong, with 157,000 employed at the end of last year compared with 135,000 when the report was launched in 2023.<\/p>\n
Much of the expansion is down to the ripple effect into the supply chain following significant investment in the sector, particularly from the big US players such as JP Morgan and Blackrock, together with huge Barclays in Glasgow.<\/p>\n
JP Morgan now has 4,500 staff in Scotland. Blackrock has 1,400, Morgan Stanley 2,700 and Barclays has grown to over 8,000.<\/p>\n
Scotland doesn\u2019t compete with London, Paris and New York, their trading floors and currency clearing, but with about 135 \u2018tier 2\u2019 locations such as Boston, Melbourne and Montreal. Jobs are being created in AI, fintech and new financial vehicles.<\/p>\n
\u201cWe have two centres \u2013 Glasgow and Edinburgh \u2013 in the top 45, so we\u2019re doing pretty well,\u201d he said.<\/p>\n
Mr Begbie is warning Prime Minister Andy Burnham and Chancellor John Healey not to be tempted into higher taxes on wealth that would damage these positive trends. Banks, for instance, already pay higher taxes than their counterparts in Europe and the US.<\/p>\n
\u201cWe don\u2019t want to see any obstacles put in the way of the progress that is being made,\u201d he said, adding that the wider economy needs to be supported through a benevolent tax system.<\/p>\n
\u201cThere are individuals in the Cabinet who support equalising income tax and capital gains tax. That would be hugely detrimental to encouraging business growth. There has to be a recognition of the risks that business people take on.\u201d<\/p>\n
Mr Begbie is keen to see public sector reform that would tackle inefficiencies, rather than expect taxpayers\u2019 to pay more.<\/p>\n
\u201cWe have to start to ask if the model for financing the public sector is still the right one,\u201d he said.<\/p>\n
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