UK Bank Shares Slip as Budget Tax Increase Looms
Lloyds and NatWest traded lower after reports that Chancellor John Healey may raise taxes on lenders in his October budget.
Key takeaways
- Lloyds and NatWest shares were lower on Friday morning, while Barclays was little changed.
- A bank surcharge increase from 3% to 8% is under discussion and could raise around £2bn a year.
Lloyds Banking Group and NatWest shares were lower on Friday morning after reports that Chancellor John Healey is poised to raise taxes on banks in his 28 October budget. As of 10:19 UTC, Lloyds traded at 103.75p, down 1.98% since the previous close, and NatWest was at 662.2p, down 1.75%. Barclays was at 432.6p, up 0.05%.
The Guardian reported that reversing cuts to the bank surcharge is one option under discussion. The surcharge is currently 3%; restoring it to 8% could raise around £2bn a year, according to the report.
UK Finance warned that further increases could weaken competitiveness and discourage investment and job creation. The Treasury said tax decisions would be set out at fiscal events, rather than through routine comment on speculation.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
