[gpt]Rewrite this article in 3-5 professional paragraphs with insights and context. Use
subheadings for each section. End with “Why it matters:” followed by one impactful sentence:
Charlie Nunn says higher taxation would be inconsistent with chancellor’s drive for growth
Business live – updatesLloyds Banking Group chief executive Charlie Nunn has warned Shadow Chancellor Rachel Reeves that any move to hike the banking surcharge in her first Budget could choke the City of London’s role in the UK’s recovery.
Speaking after Lloyds reported a 17 % rise in half-year profit to £4.5 billion, Nunn argued that higher taxes would clash with the government’s own growth ambitions. “We need stability and competitive tax rates to keep capital flowing through the UK’s financial system,” he told analysts, pointing to Chancellor Jeremy Hunt’s drive to boost investment.
Lloyds, the country’s largest mortgage lender, has benefited from rising interest margins but says bumper results are “not a licence to tax success”. Instead, Nunn urged ministers to focus on incentives that draw long-term investment and safeguard the City’s global standing.
Source: The Guardian – Business live
Why it matters: The next government will rely on City tax receipts to fund public services—over-taxing banks now could end up shrinking that revenue stream.
The boss of Britain’s largest mortgage lender has warned Rachel Reeves that increasing taxes on banks in her autumn budget would damage Labour’s plan for the City of London to power an economic recovery.
Charlie Nunn, the chief executive of Lloyds Banking Group, said a rise in bank taxation “wouldn’t be consistent” with the chancellor’s overtures as the government pushes to reboot growth.
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Source: Politics | The Guardian
