Summary
Bank share prices in the UK fell after a proposal for a new tax on their profits. The Institute for Public Policy Research (IPPR) suggested this tax could raise significant revenue for the government. Investors reacted negatively, resulting in the drop of share prices for major banks like NatWest, Lloyds, and Barclays.
Key Facts
- UK bank share prices dropped after a proposed tax on banking profits was announced.
- The IPPR think tank proposed a windfall tax to raise up to £8bn a year for the government.
- The suggested tax aims to offset taxpayer losses from the Bank of England's quantitative easing (QE) efforts.
- NatWest, Lloyds, and Barclays saw their share prices fall significantly in early trading.
- Lloyds suggests such tax increases do not align with goals to strengthen the UK financial sector.
- The Bank of England's QE program involves buying and selling government bonds to influence interest rates.
- IPPR claims these QE-related losses are benefiting commercial banks through increased profits.
- The Treasury did not comment on the proposed tax policy.
