Farage: ‘Loathsome’ banks should not be hit with new tax

Nigel Farage, leader of Reform UK, has said that banks should not face new taxes during this week's Budget, marking a shift from his earlier stance. The Reform UK leader had previously pledged to eliminate interest payments lenders receive on deposits at the Bank of England, which would be considered a banking tax. When asked about reported plans by Chancellor John Healey to raise taxes on banks, Farage stated that lending institutions already bear a heavier tax burden in the UK compared to other nations.

He emphasized that he did not wish for banks to depart from Britain, despite acknowledging the sector's practices as "loathsome." Farage expressed his disdain for the banks, saying, "I hate the banks." He acknowledged that the current tax rate of about 46.5 percent is the highest among competing nations, but stressed the importance of exercising caution before implementing further taxation.

Farage criticized lenders for failing to pass on the benefits of higher interest rates to customers and noted that de-banking was causing significant pain for individuals and businesses. However, he decided to set aside these concerns and urged Healey not to impose additional taxes on banks. Farage emphasized that imposing a tax rate that forces banks to leave London would negatively impact the entire country.

This position contrasts with Farage's past conflicts with banks, including Natwest's de-banking of Farage due to his political involvement. Farage's speech aimed to offer an alternative budget proposal to Healey's, featuring 64 policy recommendations, such as approving oil drilling at Rosebank, abolishing the energy profits levy, and reviewing capital requirements for banks.