Bank stocks are rising after reports of tax increases

• Bank stocks have risen by 2% following positive news about the budget.
• The government plans to eliminate increased taxes on banks.
• Deputies are calling for increased taxes to support state services.

British bank stocks are rising as investors expressed confidence that the sector will eliminate increased taxes in the budget, presented by Rachel Reeves. In the wake of this, shares of major banks such as Lloyds, Barclays, and NatWest rose by over 2% on the FTSE 100 stock market.

In line with the reports, the government turned to banks to express positive thoughts regarding the budget, which increased expectations that they will not be affected by the new tax. "It seems that intensive lobbying from the sector has borne fruit, although political changes in Great Britain remain a constant theme," noted Dan Koutsovrt from AJ Bell.

Speculation regarding possible tax increases on banks has been ongoing since September, when analysts began suggesting the introduction of a new tax on bank profits to offset the impact of quantitative easing. Banks assert that they already pay taxes at a rate close to 45.8%, which is a higher rate than in cities like Frankfurt and New York.

The government is currently planning to eliminate increased taxes and is urging banks to improve lending for young buyers and small businesses. This decision is the result of prolonged lobbying efforts by banks, which believe that increased taxes would severely hinder their growth.

Regardless of the positive news, some deputies and civic organizations continue to call for increased taxes, asserting that this would help restore state services, which have been strained since the cuts.

Tags: Economy