Close Menu
Voxa News

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    The Wheel Deal: How to Look Cool on a Bike

    August 3, 2025

    WNBA fan arrested for throwing sex toy on court at Dream vs. Valkyries game; League warns of ejections, bans

    August 3, 2025

    ‘Kerouac’s Road: The Beat of a Nation’ Brings the Spirit of Jack Kerouac’s America Into the 21st Century

    August 3, 2025
    Facebook X (Twitter) Instagram
    Voxa News
    Trending
    • The Wheel Deal: How to Look Cool on a Bike
    • WNBA fan arrested for throwing sex toy on court at Dream vs. Valkyries game; League warns of ejections, bans
    • ‘Kerouac’s Road: The Beat of a Nation’ Brings the Spirit of Jack Kerouac’s America Into the 21st Century
    • Manchester United’s ‘Wembley of the North’ stadium plan hits the buffers | Manchester United
    • From scrappy experiment to Wall Street’s invisible backbone
    • Why the US is burning $10m worth of birth control | Moira Donegan
    • MLB trade deadline 2025: What to make of Padres, Twins, more
    • Apostle Islands, Wisconsin, Was Named One of the Best Places to Travel in 2025—How to Visit
    Sunday, August 3
    • Home
    • Business
    • Health
    • Lifestyle
    • Politics
    • Science
    • Sports
    • Travel
    • World
    • Entertainment
    • Technology
    Voxa News
    Home»Politics»Lloyds boss warns Reeves against hiking taxes on banks as profits rise 17% | Lloyds Banking Group
    Politics

    Lloyds boss warns Reeves against hiking taxes on banks as profits rise 17% | Lloyds Banking Group

    By Olivia CarterJuly 24, 2025No Comments4 Mins Read0 Views
    Facebook Twitter Pinterest LinkedIn Telegram Tumblr Email
    Lloyds boss warns Reeves against hiking taxes on banks as profits rise 17% | Lloyds Banking Group
    Lloyds reported a 17% rise in pre-tax profits for the second quarter to nearly £2bn, driven in part by higher fees from its pension, insurance and investments business. Photograph: Stefan Rousseau/PA
    Share
    Facebook Twitter LinkedIn Pinterest Email

    The boss of Britain’s largest mortgage lender has warned Rachel Reeves that increasing taxes on banks in her autumn budget would damage Labour’s plan for the City of London to power an economic recovery.

    Charlie Nunn, the chief executive of Lloyds Banking Group, said a rise in bank taxation “wouldn’t be consistent” with the chancellor’s overtures as the government pushes to reboot growth.

    Against a backdrop of mounting speculation that Reeves could use her autumn budget to announce a fresh round of tax rises, his comments came as the high street bank reported a 17% jump in second-quarter profits.

    Nunn told journalists on Thursday the bank had not had any discussions with the government about a potential tax rise, and acknowledged that it was ultimately a “political decision”. However, he said that targeting the financial services sector with higher taxes would mark a stark reversal by the chancellor, who last week announced a raft of changes to cut regulation and increase growth across the sector.

    He nsaid Reeves had made the case for a “strong financial services sector” to support the UK economy, and had highlighted that the industry had a “huge role to play” to support households and businesses.

    “We definitely believe that’s an important thing to focus on, and obviously, therefore, [it] wouldn’t be consistent with a tax rise,” Nunn said.

    He added that the UK already had “the highest tax regime on the financial services sector of any major economy”. Banks face the 25% headline rate of corporate tax, as well as a 3% bank surcharge and a further bank levy, which is a charge on a portion of balance sheet assets.

    However, the Conservatives cut the bank surcharge, from 8% to 3%, in April 2023 in a measure opposition MPs decried as a costly giveaway. This month, analysts at Deutsche Bank speculated that Reeves could reverse the cut to raise about £1.5bn.

    Labour has placed financial services among its eight important sectors to receive government backing in its industrial strategy, while industry lobbyists have warned the chancellor that extra help is required to bolster the City after Brexit.

    Estimates by the lobby group UK Finance and the accountancy firm PwC suggest that, when also accounting for employment taxes and VAT, banks in the UK are paying a total tax rate of about 45.8%. That compares with 38.6% in Frankfurt, and 27.9% in New York.

    “We’re proud of being one of the or the biggest taxpayer in the UK as Lloyds Banking Group,” Nunn said. “So we are completely comfortable with that. But it is important when you look at the competitiveness of the City of London and the financial services sector that we remain a competitive tax regime.”

    skip past newsletter promotion

    Sign up to Business Today

    Get set for the working day – we’ll point you to all the business news and analysis you need every morning

    Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply.

    after newsletter promotion

    Raising taxes on banks would also add to costs at a time when many lenders – including Lloyds – are bracing for a hefty compensation bill over the car finance commission scandal. A supreme court ruling is widely expected within the next week. Lloyds has put aside £1.2bn in provisions to cover potential costs.

    Updating the City on its second-quarter performance, the bank reported a 17% rise in pre-tax profits to nearly £2bn, up from £1.7bn in the same period last year. The increase was driven in part by higher fees from its pension, insurance and investments business.

    When asked whether he shared Reeves’ view, expressed during her Mansion House speech last week, saying that regulation was acting like a “boot on the neck” of business, Nunn said: “That’s very much for the chancellor to use that language.”

    However, the added that he believed there was a “real opportunity to align regulation, increasingly, with competitiveness and growth.”

    Among the proposals welcomed by the Lloyds boss are plans in the coming months to review ringfencing rules, which are the post-financial crisis regulations meant to protect consumer cash from a bank’s riskier business activities. Bank bosses including Nunn had lobbied for ringfencing to be abolished, arguing the rule was redundant as a result of other safeguards brought in after the 2008 banking crisis.

    banking Banks boss group Hiking Lloyds profits Reeves rise taxes Warns
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Olivia Carter
    • Website

    Olivia Carter is a staff writer at Verda Post, covering human interest stories, lifestyle features, and community news. Her storytelling captures the voices and issues that shape everyday life.

    Related Posts

    WNBA fan arrested for throwing sex toy on court at Dream vs. Valkyries game; League warns of ejections, bans

    August 3, 2025

    Social media ads promoting small boat crossings to UK to be banned | UK news

    August 2, 2025

    Police pay rise of 4.2% derided as ‘barely treading water’

    August 2, 2025

    Labour does not deserve to win next election without change, Reeves says | Rachel Reeves

    August 2, 2025

    Gaza hospitals say 18 killed by Israeli fire as aid site shootings continue to rise | Gaza

    August 2, 2025

    Minister says lawyers missing the point on Palestinian recognition

    August 2, 2025
    Leave A Reply Cancel Reply

    Medium Rectangle Ad
    Top Posts

    27 NFL draft picks remain unsigned, including 26 second-rounders and Bengals’ Shemar Stewart

    July 17, 20251 Views

    Eight healthy babies born after IVF using DNA from three people | Science

    July 17, 20251 Views

    Massive Attack announce alliance of musicians speaking out over Gaza | Kneecap

    July 17, 20251 Views
    Don't Miss

    The Wheel Deal: How to Look Cool on a Bike

    August 3, 2025

    “Summer Streets” is back in Manhattan. Today—and on the next two Saturdays!—you’ll be able to…

    WNBA fan arrested for throwing sex toy on court at Dream vs. Valkyries game; League warns of ejections, bans

    August 3, 2025

    ‘Kerouac’s Road: The Beat of a Nation’ Brings the Spirit of Jack Kerouac’s America Into the 21st Century

    August 3, 2025

    Manchester United’s ‘Wembley of the North’ stadium plan hits the buffers | Manchester United

    August 3, 2025
    Stay In Touch
    • Facebook
    • YouTube
    • TikTok
    • WhatsApp
    • Twitter
    • Instagram
    Latest Reviews
    Medium Rectangle Ad
    Most Popular

    27 NFL draft picks remain unsigned, including 26 second-rounders and Bengals’ Shemar Stewart

    July 17, 20251 Views

    Eight healthy babies born after IVF using DNA from three people | Science

    July 17, 20251 Views

    Massive Attack announce alliance of musicians speaking out over Gaza | Kneecap

    July 17, 20251 Views
    Our Picks

    As a carer, I’m not special – but sometimes I need to be reminded how important my role is | Natasha Sholl

    June 27, 2025

    Anna Wintour steps back as US Vogue’s editor-in-chief

    June 27, 2025

    Elon Musk reportedly fired a key Tesla executive following another month of flagging sales

    June 27, 2025
    Recent Posts
    • The Wheel Deal: How to Look Cool on a Bike
    • WNBA fan arrested for throwing sex toy on court at Dream vs. Valkyries game; League warns of ejections, bans
    • ‘Kerouac’s Road: The Beat of a Nation’ Brings the Spirit of Jack Kerouac’s America Into the 21st Century
    • Manchester United’s ‘Wembley of the North’ stadium plan hits the buffers | Manchester United
    • From scrappy experiment to Wall Street’s invisible backbone
    • About Us
    • Disclaimer
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions
    2025 Voxa News. All rights reserved.

    Type above and press Enter to search. Press Esc to cancel.