The government last night quashed suggestions that it is considering a windfall tax on banks as one of the measures to plug a hole in its finances at next month’s budget.
Two senior sources close to prime minister Rishi Sunak and chancellor Jeremy Hunt played down the idea that they were looking at ways to impose additional taxes on banks. The news will come as a relief to the City, which had feared a raid on bumper profits derived from rises in interest rates.
On Thursday, the Bank of England is expected to increase rates by three-quarters of a percentage point to 3 per cent, in the largest single move since the efforts on “Black Wednesday” in 1992 to prop up the pound. It would
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