Rachel Reeves must resist the deafening pre-budget lobbying and tax the banks

2 days ago7 min read

The political theatre surrounding Rachel Reeves’s first budget is intensely familiar, yet the pressure is unprecedented. On Westminster Bridge, activists from Positive Money and Tax Justice UK staged a vivid protest, wearing masks of banking CEOs and brandishing giant champagne bottles to symbolize an industry whose domestic profits have been inflated by the same economic crisis squeezing households.This spectacle is just one part of a deafening symphony of pre-budget lobbying. The central demand is for a windfall tax on banks, mirroring the levy imposed on energy giants when their profits soared.The argument is one of simple equity: if one essential sector was tapped for its unearned gains, why should another be granted immunity? The banking lobby, UK Finance, counters with predictable warnings of crippled competitiveness and reduced investment. This is a profound political and moral calculation for a Labour government with a fragile mandate.There is no popular way to raise taxes, but the chancellor must find the courage to do it anyway. She must look past the immediate fury of banking titans and their media allies.The structural reality is clear: bank investment in the real economy is declining even as shareholder payouts reach record levels. This is not about punishing success, but about correcting a profound imbalance and asking a sector that has profited from turmoil to contribute to the solution.The political courage required is immense, pitting the short-term noise of the lobbying blitz against the long-term need to fund public services. Reeves must tune out the clamour.This is a defining test of her commitment to a fairer foundation. The people struggling with soaring mortgage rates and food prices are watching.They see local branch closures and record bonuses, not unassailable global competitors. This budget will be remembered not for its fiscal rules, but for whose interests it ultimately championed.The ghosts of past chancellors who bowed to City pressure should be her guide. It is a moment for principle and for a clear-eyed rejection of the notion that what is good for the banks is inherently good for Britain.

#featured

#UK budget

#Rachel Reeves

#bank tax

#lobbying

#protests

#fiscal policy

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