The Treasury has asked UK banks to issue prominent public endorsements of tomorrow’s Budget, as chancellor Rachel Reeves prepares to spare the sector from a tax rise.
According to the Financial Times, officials want lenders to highlight how the policies will support lending to first-time buyers and small firms, with one government official reportedly saying: “The chancellor does want business to highlight the positives more.”
A leading City figure confirmed Reeves has asked senior financial executives to strike an upbeat tone, saying: “There was a frustration that the government’s positive messaging about the economy was being undermined by unwelcome commentary.”
Another person involved in discussions said the chancellor wants a “continuous drumbeat of commitments and deliverables” to show the impact of avoiding certain tax increases.
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