Key facts
- Robert Jenrick, Reform UK's Treasury spokesman, refused to rule out a banking tax.
- Nigel Farage, Reform UK leader, has previously expressed a desire to tax banks.
- Jenrick suggested ending the Bank of England's interest payments on reserves could save £40 billion.
- Reform UK plans £80 billion in spending cuts, mainly through welfare reform.
- Jenrick indicated the Bank of England's Monetary Policy Committee could include private sector members.
Robert Jenrick, Reform UK's Treasury spokesman, has not ruled out the possibility of a banking tax, a policy previously suggested by party leader Nigel Farage. Speaking at a Reform conference event, Jenrick indicated that while the party has not formally committed to such taxes, the idea of ending the Bank of England's interest payments on reserves, a move that could save taxpayers an estimated £40 billion, has merit.
Farage had previously stated his intention to tax banks, citing his personal experience of being de-banked by Coutts. Jenrick suggested that Chancellor John Healey might target banks in the upcoming Budget to raise revenue, describing their significant profits as "low hanging fruit." He also noted that Farage's concern was more about the Bank of England's reserve interest payments.
Jenrick also announced Reform UK's plan for £80 billion in spending cuts, primarily through welfare reform, and stated he would hold a budget within the first 100 days of entering government. He suggested that the Bank of England's Monetary Policy Committee could benefit from including members with practical experience from the private sector, rather than solely academic economists.
Former Chancellor Rachel Reeves had previously declined to increase taxes on banks, despite raising significant revenue. Speculation about banking taxes is increasing ahead of the Budget, with Chancellor Healey's financial headroom expected to be reduced due to the Iran war.