The chief executive of Lloyds Banking Group cautioned that Rachel Reeves's potential rise in bank taxation could contradict government efforts to stimulate growth in the City of London. He noted that the UK financial services already face the highest tax regime globally. In light of recent corporate tax changes that favor the financial sector, targeting banks with a tax increase would reverse progress. Nunn argued that a strong financial services sector is crucial for supporting households and businesses, which aligns with Labour's industrial strategy goals.
Charlie Nunn, the chief executive of Lloyds Banking Group, warned that increasing taxes on banks would hinder Labour's plan for economic recovery in the City of London. He emphasized that such a tax hike would contradict the chancellor's recent promises to stimulate growth. Nunn pointed out that the financial sector plays a crucial role in supporting households and businesses. Additionally, he noted that the UK already has the highest tax regime for financial services compared to other major economies.
Nunn stated that raising taxes on banks would represent a significant policy shift following the chancellor's announcement of regulatory changes aimed at boosting growth in the financial sector. He stressed that the recent tax regime cuts were made to promote the financial industry, which is seen as vital for the economic future of the UK. The implied contradiction in policy could undermine efforts to revitalize this sector.
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