UK Banks Brace for Possible Tax Hikes in New Labour Budget

Banks in Britain are lobbying against potential tax hikes in the upcoming Labour government's first budget. Despite no official statements from Prime Minister Keir Starmer or Finance Minister Rachel Reeves, concerns arise from Starmer's remarks. Banks fear the Treasury may raise existing surcharges to fill a £22 billion fiscal gap.

Banks in Britain are stepping up lobbying efforts against potential tax hikes in the upcoming Labour budget, industry sources have disclosed. Concerns stem from Prime Minister Keir Starmer's recent comments about fiscal burdens for those with 'broader shoulders', although no explicit plans have been outlined.

The banking sector has enjoyed substantial profits due to higher interest rates. Finance Minister Rachel Reeves is expected to discuss potential tax surcharges with senior banking representatives soon, according to sources. The Treasury has refrained from commenting on tax speculations outside a fiscal event.

Reeves might consider raising an existing banking surcharge to help address a £22 billion shortfall in public finances. A Treasury spokesperson stated they are willing to accept feedback until September 10, while UK Finance has reiterated calls for these surcharges to be phased out.

(With inputs from agencies.)