Shadow Chancellor Rachel Reeves initially considered a multibillion-pound bank windfall tax, intended to address public finances and fund the removal of the two-child benefit limit. This period involved engagement with prominent financial sector leaders, including executives from JP Morgan and Goldman Sachs, who reportedly advised against increasing bank taxes.
Representatives from the banking industry underscored their existing tax contributions, highlighting a 28% headline corporation tax rate—exceeding the standard 25% charged on company profits—along with an additional 0.1% levy on bank balance sheets. The proposed windfall tax plan was subsequently not pursued.
Ms. Reeves has since affirmed the financial services sector's critical role in the nation's economic growth agenda, integrating it among eight key sectors within Labour’s industrial strategy.
Source: https://www.theguardian.com/uk-news/2025/nov/28/city-cant-banks-rachel-reeves-jp-morgan-jp-morgan-goldman-sachs-budget