Lloyds finance chief calls for ‘stable fiscal regime’

Lloyds yesterday urged Labor to deliver on its growth promises contained in next week’s Budget as it issued a warning over any potential tax rises for the banking sector.

The lender’s chief financial officer William Chalmers (pictured) said it was already one of the UK’s largest taxpayers and the country must have a “competitive and stable tax regime” to promote the investments the country needs.

It came as Lloyds Banking Group, which also owns Halifax and Bank of Scotland, reported better-than-expected third-quarter profits of £1.8bn.

But at the same time the bank – which is Britain’s biggest mortgage lender – and its customers face uncertainty ahead of Rachel Reeves’ first budget next Wednesday.

Asked about the possibility of tax rises for banks, Chalmers said: “The banking sector – and certainly we at Lloyds – are already one of the UK’s largest taxpayers and indeed we are proud to make our contribution. to the society of which we are part”. part.

‘It is also important to have a competitive and stable tax regime to encourage the type of investment and the type of lending that we would seek to do to promote the growth agenda.

“We note the Government’s commitment to growth and we are very hopeful that the Budget will be consistent with that agenda.”

There has been speculation since the election that the Government could target banks with a windfall tax or an increase in the current 3 per cent surcharge on profits that lenders already pay.

Reeves is trying to target those with “broader shoulders” as he seeks to close a £40bn gap in the public finances, and banks have enjoyed huge profits thanks to higher interest rates in recent years.

Figures earlier this week from trade body UK Finance showed that banks and their employees contributed a record £44.8 billion in taxes in the year to March.

Chalmers said the bank expected the budget to be a “pro-growth” event and “if that is the case, it should help the mortgage market”.

He said he hoped Reeves could provide “clarity” about his plans.

Lloyds’ profits were 2 percent lower than the same period last year, but better than the 1.6 billion pounds expected by analysts. The shares fell 0.6 per cent, or 0.38 pence, to 61.62 pence.

The bank said its customers were showing increasing financial confidence as cost-of-living pressures eased.