"The IPPR, a left-leaning think tank, said a levy on the profits of banks was needed as the Bank of England's quantative easing (QE) drive was costing taxpayers 22bn a year. The Bank of England buys bonds - essentially long term IOUs - from the UK government and corporations to increase bond prices and reduce longer term interest rates."
"Traders and investors have reacted to the Institute for Public Policy Research (IPPR) saying a windfall tax could raise up to 8bn a year for the government. The think tank said the policy would compensate taxpayers for losses on the Bank of England's cash printing drive. While the Treasury has not commented on any policy, concerns led to NatWest, Lloyds and Barclays being the biggest fallers on the main index of the London Stock Exchange early on Friday."
"Charlie Nunn, the chief executive of Lloyds bank, has previously spoke out against any potential tax rises for banks in the Budget. He said efforts to boost the UK economy and foster a strong financial services sector "wouldn't be consistent with tax rises". The Treasury has been contacted for comment. The IPPR, a left-leaning think tank, said a levy on the profits of banks was needed as the Bank of England's quantative easing (QE) drive was costing taxpayers 22bn a year."
Share prices of leading UK banks fell sharply after proposals for a windfall tax on banking profits. The Institute for Public Policy Research estimated such a levy could raise up to 8bn a year and argued it would compensate taxpayers for losses from the Bank of England's quantitative easing. The IPPR said QE is costing taxpayers 22bn a year as the Bank sells bonds below purchase value and incurs interest-rate losses. The IPPR described those interest-rate losses as a government subsidy to commercial banks and noted commercial bank profits increased compared to before the pandemic. Lloyds chief executive Charlie Nunn opposed potential tax rises and the Treasury had not commented.
Read at www.bbc.com
Unable to calculate read time
Collection
[
|
...
]