ET Net News Agency, October 5 — The UK will unveil Prime Minister Keir Starmer's new cabinet's first budget on October 28, reportedly including plans to impose a windfall tax on UK banks to alleviate government financial difficulties. However, the banking sector warns this could force banks to shift operations outside the UK, leaving the government worse off.
UK Sky News reported that the banking industry is preparing to write a letter to Chancellor of the Exchequer Rachel Reeves, protesting the proposed windfall tax. A draft copy of the letter obtained by the broadcaster shows that while the industry understands the government's fiscal pressures, UK banks already bear higher tax burdens compared to their international peers; imposing additional taxes on UK banks may make it harder for them to increase domestic investments or could force them to move operations overseas, and it may not necessarily lead to higher tax revenues. (yc)
UK Sky News reported that the banking industry is preparing to write a letter to Chancellor of the Exchequer Rachel Reeves, protesting the proposed windfall tax. A draft copy of the letter obtained by the broadcaster shows that while the industry understands the government's fiscal pressures, UK banks already bear higher tax burdens compared to their international peers; imposing additional taxes on UK banks may make it harder for them to increase domestic investments or could force them to move operations overseas, and it may not necessarily lead to higher tax revenues. (yc)
