Proactive Investors - UK banking bosses are set to meet the Chancellor after their shares were hit by fears of a tax hike on the sector in the government's October budget.
Rachel Reeves will meet leaders from the big high street lenders in the coming days, according to reports, where the rise in taxes on profits is expected to be a key subject.
Industry sources told Reuters that they are anticipating that the Treasury will seek to hike the existing surcharge on profits, as this would be easiest to implement.
Expectations of a tax rise arose after Prime Minister Keir Starmer’s speech last Tuesday, where he alluded to tax hikes to fill a £22 billion hole in public finances, and that those “with the broadest shoulders should bear the heaviest burden”.
Banks will, of course, not take this sitting down, with the industry sources claiming that UK lenders are already taxed more than peers in other countries, while also wheeling out the classic lobbying line that increasing taxes could have an impact on the cost and availability of credit.
Unbanked report
Also on Wednesday, the Financial Conduct Authority issued a report to encourage banks, building societies and payment firms to "do more" to support people who don't have accounts but want one.
The City watchdog says its research has found "several providers could make it easier to apply" for a basic account without an overdraft facility.
It has asked account providers to review their approach to account denials and closures to ensure that vulnerable consumers aren’t losing out.
Providers have also been told to ensure people aren’t denied access just because they can’t produce standard forms of ID, and make it clear which alternative forms of ID are acceptable.
Sheldon Mills, executive director of consumers and competition at the FCA, said the report found areas where "there is room for improvement".
The FCA’s report also highlighted issues other organisations have experienced accessing accounts, including pawnbrokers, charities and in the adult entertainment sector.