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However, Mr Nunn’s comments suggest the industry wants her and Chancellor Jeremy Hunt to go further and explicitly rule out a windfall tax on profits.
The disastrous introduction of a bank tax in Italy in August has underscored investor fears over tax policy on banks.
A fresh levy introduced by Italian prime minister Giorgia Meloni in August prompted a sell-off in local bank share prices, forcing the government to backtrack and water down the plan.
UK banks are already subject to several types of taxes, such as the bank levy on their balance sheet and bank surcharge on profits.
Last year the Government cut the bank surcharge to 3pc from 8pc, saying it was necessary to make UK banking internationally competitive. However, rising interest rates have bolstered profits at some banks and prompted calls for higher taxes.
Positive Money, a campaign group, said a levy on HSBC, Barclays, Lloyds and NatWest could raise anywhere from £5bn to £20bn. Interest rates largely boosted profits at banks last year. In 2023, high levels of customer switching have forced banks to offer more competitive savings rates, which has eaten into earnings.
Mr Nunn’s comments came as it emerged that Barclays is mulling plans to axe thousands of clients from its investment bank as it targets £1bn in cost cuts.
As part of an anticipated restructuring next year, the bank has discussed plans to end relationships with clients that do not generate enough profits for the lender.
Clients that face being cut off include governments, hedge funds, fund managers and sovereign wealth funds.
Barclays investment bank has around 10,000 corporate customers, with the Financial Times reporting that up to 2,500 could be dropped.
The move is one of several options under consideration by chief executive CS Venkatakrishnan, known as Venkat, as he pursues a restructuring plan codenamed Project Minerva.
The bank is under intense pressure to revive its fortunes after a share price slide left it lagging behind rivals.
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