UK Chancellor John Healey told Britain's largest lenders they face a "challenging fiscal picture" but remained silent on whether banks will face higher taxes in the upcoming Budget. Bank executives from Barclays, HSBC, Lloyds, NatWest, Nationwide and Santander argued that tax increases would harm growth and create disparities with financial centres like New York. Healey opened the meeting outlining Budget priorities to give families breathing space, back jobs and drive growth while maintaining fiscal discipline.
Executives warned that higher taxes would raise capital costs and reduce lending, with some noting international shareholders' concerns about the UK tax regime. The industry posted £29bn of pre-tax profits in the first half of the year, making it politically attractive for the Treasury to consider a windfall levy. Bank bosses acknowledged it's hard to argue against tax increases given record profits, though they hope to spare the sector from the Budget.
Source: Financial Times Companies · Summarized by HeadlinesBriefing