Banks in the UK are bracing for tax rises, amid increased expectations that Sir Keir Starmer could soon be replaced by a more leftwing Labour prime minister.
The banking industry narrowly escaped a tax increase in the November Budget after chancellor Rachel Reeves sought reassurance that they would boost lending in the UK and publicly support her fiscal plans.
But the Peter Mandelson vetting scandal — and the increased perception that Starmer and Reeves will soon be ousted — has led banks to war-game a leftward shift.
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