Fri, 29 Aug 2025

Fri, 29 Aug 2025 Bank share prices tumble after calls for tax on profits

A think tank says a new bank tax could raise £8bn a year, a suggestion that sent bank shares tumbling.

* Share prices of leading UK banks (NatWest, Lloyds, and Barclays) fell by over 4%, 3%, and 2% respectively after a proposal was made to introduce a new tax on banking profits.
* The Institute for Public Policy Research (IPPR) think tank suggests a windfall tax on the sector could raise up to £8bn per year, with the funds clawed back from taxpayers' money spent supporting the banking sector.
* The Bank of England's quantitative easing programme has cost taxpayers £22bn per year, and the IPPR argues that this is a "government subsidy" to commercial banks.
* The tax would target windfall profits linked to QE, leaving banks with still substantially higher profits.
* UK Finance says a further tax on banks would make Britain less internationally competitive.
* Financial experts warn that investors are now uncertain about future profits and dividends for the banking sector.
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