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UK Finance Minister Rejects New Bank Tax, Shares Surge

11/7/2025

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Summary

Story summary

Rachel Reeves, the UK Finance Minister, will not raise taxes on banks in the upcoming November 26 budget to support economic growth.
The decision follows calls for a new bank tax that could have raised about £8 billion.
Bank shares rose, with NatWest and Lloyds up about 2%.
Bank of England Governor Andrew Bailey said the budget will influence future interest rate decisions as the economy weakens.

History

Historical Context

The 2008 financial crisis prompted the UK government to intervene, injecting £137 billion into banks to restore stability. In 2012, the Bank of England launched the Funding for Lending Scheme to encourage lending and support economic recovery. Rachel Reeves' recent decision not to raise taxes on banks reflects ongoing strategies to foster financial growth while scrutinizing banking practices amid persistent economic challenges.

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Story summary

Rachel Reeves, the UK Finance Minister, will not raise taxes on banks in the upcoming November 26 budget to support economic growth.
The decision follows calls for a new bank tax that could have raised about £8 billion.
Bank shares rose, with NatWest and Lloyds up about 2%.
Bank of England Governor Andrew Bailey said the budget will influence future interest rate decisions as the economy weakens.

1 / 2