Reform UK hints at bank tax but stops short of commitment
Reform UK’s Treasury spokesman warned investors to watch the space as the party toys with ideas to tax banks, while denying any concrete plan.
At a Reform UK conference in Birmingham, Treasury spokesman Jenrick told an audience of City executives that the party had not formally adopted a banking tax, but he would not rule out the idea. The comment came after party leader Nigel Farage said he would “hit lenders because he didn’t like them”, reviving a proposal to curb the sector’s profits.
Why the prospect of a bank tax matters
Banking profits have surged since the pandemic, making the sector a tempting source of revenue for a government seeking to fund public services without raising general taxes. John Healey, the chancellor, is widely expected to use the upcoming Budget to tap “low‑hanging fruit” in the form of bank levies. Investors are therefore watching Reform’s signals closely, as any shift could affect share prices, dividend payouts and the cost of credit for businesses.
Policy details and broader reforms
Reform’s 2024 manifesto includes a proposal to end the Bank of England’s practice of paying interest on reserves created during quantitative easing, a move the party claims could save taxpayers £40 billion. The party also hinted at reforms to the Monetary Policy Committee, arguing that a broader mix of experience, including private‑sector perspectives, could improve decision‑making.
Deputy leader Richard Tice and Labour’s Louise Haigh have both criticised the Bank’s quantitative‑tightening programme, echoing concerns about the impact on commercial lenders. Former chancellor Rachel Reeves has previously resisted new bank taxes, noting that existing levies already contribute around £65 billion to the Treasury.
What comes next
Reform UK told investors to expect further announcements on financial‑services policy, including possible red‑tape cuts for lenders. Jenrick said a full budget could be delivered within the first 100 days of a Reform government, and that the party would continue to engage with City leaders on spending cuts and welfare reform.
For a deeper look at how Reform is courting the City, see our coverage of the Birmingham conference.
