Rising taxes is set to be the main theme of this year's pre-budget lobbying, with industry groups and individuals seeking to undermine any proposals that might hit their profits. On Westminster Bridge this week, campaigners wearing masks of top bank CEOs waved champagne bottles and sacks of cash, demanding a windfall tax on banks' record-breaking domestic profits.
The campaign is supported by several charities, including Positive Money, Tax Justice UK, the Fairness Foundation, Equality Trust, and others, who are pushing for a tax that would raise billions from the big four banks. The argument is simple: inflation has driven up bank profits to record heights, yet these same increases have not benefited consumers. A 35% energy profits levy set by the government in 2022 was seen as a necessary measure, so why not apply a similar tax to an equally unavoidable utility like banking?
UK Finance, the lobby group representing British banks, responded with predictable skepticism, claiming that such a tax would damage competitiveness with foreign banks and stifle investment. However, campaigners point out that the real issue is that banks are paying growing sums to their shareholders while underinvesting in the real economy.
As the pre-budget lobbying season reaches its crescendo, there's no shortage of industry groups pushing back against proposals for higher taxes. Gambling firms, property developers, and pension companies are among those seeking to avoid any increases that might hit their profits.
A proposed 50% tax on gambling is seen as a prime target by campaigners, with the Institute for Public Policy Research suggesting it could raise £3.2 billion. However, the industry has responded with outrage, calling the idea "economically reckless" and warning of job losses if such a tax were implemented.
The issue of property taxes has also been highlighted, with Sotheby's estate agents warning that any increase in council tax would be disastrous for the housing market. Meanwhile, Knight Frank is protesting about proposed mansion taxes, claiming it would force thousands of pensioners to sell their homes and create a "stagnant swamp" in the market.
There's no shortage of lobby groups seeking to influence policy on this front either, with the Supermarket Association warning that higher business rates would lead to increased food prices. It's clear that these companies are more interested in protecting their profits than in supporting any proposals that might benefit ordinary consumers.
The chancellor is faced with a daunting task: balancing the need for tax revenue with the pressure from industry groups and lobbyists who seek to undermine any proposals that might hit their profits. There's no easy solution, but one thing is clear: close ears to the cacophony of lobbying and focus on the needs of ordinary people.
The reality is that there's no popular way to raise taxes to repair crippled services. The only tax proposals that enjoy public backing are those aimed at the wealthy, high earners, social media companies – and even then, support is not universal. It's clear that policymakers must prioritize fairness over politics, closing loopholes and making sure the wealthy contribute their fair share.
Ultimately, this government's contradictory messaging has left it late to rouse public opinion for collective contribution. With polls showing the party sitting at 17% in the polls, there's little room for maneuver. The chancellor can only trust her own judgment, taking a long-term view and aiming for the fairest path possible – even if it means facing vilification from industry groups and critics alike.
The campaign is supported by several charities, including Positive Money, Tax Justice UK, the Fairness Foundation, Equality Trust, and others, who are pushing for a tax that would raise billions from the big four banks. The argument is simple: inflation has driven up bank profits to record heights, yet these same increases have not benefited consumers. A 35% energy profits levy set by the government in 2022 was seen as a necessary measure, so why not apply a similar tax to an equally unavoidable utility like banking?
UK Finance, the lobby group representing British banks, responded with predictable skepticism, claiming that such a tax would damage competitiveness with foreign banks and stifle investment. However, campaigners point out that the real issue is that banks are paying growing sums to their shareholders while underinvesting in the real economy.
As the pre-budget lobbying season reaches its crescendo, there's no shortage of industry groups pushing back against proposals for higher taxes. Gambling firms, property developers, and pension companies are among those seeking to avoid any increases that might hit their profits.
A proposed 50% tax on gambling is seen as a prime target by campaigners, with the Institute for Public Policy Research suggesting it could raise £3.2 billion. However, the industry has responded with outrage, calling the idea "economically reckless" and warning of job losses if such a tax were implemented.
The issue of property taxes has also been highlighted, with Sotheby's estate agents warning that any increase in council tax would be disastrous for the housing market. Meanwhile, Knight Frank is protesting about proposed mansion taxes, claiming it would force thousands of pensioners to sell their homes and create a "stagnant swamp" in the market.
There's no shortage of lobby groups seeking to influence policy on this front either, with the Supermarket Association warning that higher business rates would lead to increased food prices. It's clear that these companies are more interested in protecting their profits than in supporting any proposals that might benefit ordinary consumers.
The chancellor is faced with a daunting task: balancing the need for tax revenue with the pressure from industry groups and lobbyists who seek to undermine any proposals that might hit their profits. There's no easy solution, but one thing is clear: close ears to the cacophony of lobbying and focus on the needs of ordinary people.
The reality is that there's no popular way to raise taxes to repair crippled services. The only tax proposals that enjoy public backing are those aimed at the wealthy, high earners, social media companies – and even then, support is not universal. It's clear that policymakers must prioritize fairness over politics, closing loopholes and making sure the wealthy contribute their fair share.
Ultimately, this government's contradictory messaging has left it late to rouse public opinion for collective contribution. With polls showing the party sitting at 17% in the polls, there's little room for maneuver. The chancellor can only trust her own judgment, taking a long-term view and aiming for the fairest path possible – even if it means facing vilification from industry groups and critics alike.
I mean, come on... banks are making record profits while ordinary people are struggling to make ends meet 
. And now they're trying to convince us that a tiny tax is too much? It's just not fair 
. We need some real change here, not just handouts for the big four 
. I'm all for closing loopholes and making sure the wealthy contribute their fair share 
. Can't believe they're more worried about competing with foreign banks than investing in our communities 
. It's time to put people over profits! 
while making it hard for regular people to afford basic stuff 
, at least that way the industry would be incentivized to think about more than just shareholders 
. And those mansion taxes? Fingers crossed they don't mess up the housing market 
.
. It's like, can't we just make sure everyone contributes fairly for once 
? The chancellor needs to prioritize fairness over politics and close those loopholes 
. I'm rooting for her to do the right thing 
This pre-budget lobbying is getting intense! I think it's super fair that we're having this conversation about taxing bank profits, especially with inflation on the rise 
. It's not right that big banks are raking in record-breaking profits while consumers are struggling 
. We need a tax system that ensures the wealthy contribute their fair share 
.
. It's time for some tough decisions and a long-term view from the chancellor 
. Wish them luck with that! 
its like, cant we just get some basic fairness here? shouldn't we be taxing the big banks and corporations more to support our crumbling public services? 
, especially when big banks are making record profits 
. I think a windfall tax on banks' domestic profits could be a good idea 
. We need to make sure everyone contributes fairly, not just the wealthy elite 
.
. The Supermarket Association saying that higher business rates would lead to increased food prices is a big worry for me 
. Can't we just make sure that big companies contribute their fair share? 
wanna see a tax that'd help level the playing field, ya know? 
. We need policymakers who are willing to take a stand and fight for the people, not just the fat cats 
.
. I mean, they're making record profits and yet they're not passing it on to the little guy. It's just not right. And now they're all like "oh no, we'll go bankrupt if you put a tax on us" 
. Give me a break.
. and what's with all these tax breaks for the wealthy? 
. the gov's gotta find a way to balance the books without making it all about the big corps 
. THE REAL ISSUE IS THAT THEY'RE GETTING AWAY WITH PAYING OUT HUGE SUMS TO SHAREHOLDERS WHILE UNDERINVESTING IN THE ECONOMY 
I'm getting so fed up with these big banks making record profits while regular people are struggling to make ends meet 
A 50% tax on gambling would be a start, but I'm not holding my breath... 
.
. The fact that industry groups are trying to spin it as damaging competitiveness is just laughable – newsflash: profit-sharing isn't exactly good for the economy 
.
. Time to take a long-term view and aim for the fairest path possible 
. And to think that they're trying to undermine any tax proposals that might hit their pockets... it's like, shouldn't they be using some of that money to help people who are struggling? 
. It feels like these big companies just have no qualms about taking and taking without giving anything back. And now we're expected to believe that if they pay a little bit more in taxes, it'll somehow magically solve all our problems? No thanks 
. We need fair taxation and some real change, not just empty promises from politicians 
the problem is not competitiveness with foreign banks, but underinvesting in the real economy and paying shareholders handsomely