John Healey told executives from Barclays, HSBC, Lloyds, NatWest, Nationwide and Santander that the fiscal picture was difficult, and he gave no guidance on a bank tax in the coming Budget.
UK chancellor John Healey told bosses of the country's largest lenders on Tuesday that the government faced a challenging fiscal picture, the Financial Times reported, but he did not say whether banks would face higher taxes in the Budget later this month.
The meeting at 11 Downing Street included executives from Barclays, HSBC, Lloyds, NatWest, Nationwide and Santander, the FT said, citing people familiar with the discussions. The paper described it as likely the last such meeting before the Budget.
Those executives argued that higher bank taxes would hurt the growth agenda and widen the gap between London and centres such as New York, the people told the FT. Healey said the fiscal picture was difficult and that no tax decisions had been made.
The FT said he was under pressure to raise revenue because of higher borrowing costs and new spending demands, including defence. No figure for a bank levy, and no draft Budget measure, was published from the meeting.
The Budget is the next formal point at which any bank-tax decision would be set out. Healey's office had not issued a public readout in the FT account.
People Sentiments Mixed
- Bank executives argued, according to people familiar with the meeting, that a tax increase would harm the growth agenda.
- Healey told the lenders the fiscal picture was difficult and that no tax decisions had been taken.