Bank levy 'will hurt growth', OakNorth boss warns
The chief executive of one of Britain's major business lenders has warned Rachel Reeves that a tax on banks would damage the UK's economic growth engine.Rishi Khosla, head of OakNorth, which provides loans to small firms often shunned by big banks, told The Mail on Sunday that a new levy on bank profits would leave them with 'less capital to lend' to growing firms. 'The UK already has one of the highest effective tax rates for banks in the developed world. If investors in British banks see continually lower returns here than elsewhere, they'll simply deploy their capital in other markets, leaving even less money to fund UK businesses and growth,' Khosla said. 'Less capital to spend': Rachel Reeves has been warned that a tax on banks would damage the UK's economic growth engineBanks were expected to be spared a new levy after Reeves indicated she wanted to protect the sector. But they were back in her sights last week with reports that Reeves was mulling a last-minute raid on their profits.Khosla also said the recent exodus of entrepreneurs should be a 'wake-up call' for Reeves not to impose more taxes, adding: 'We need to be doing everything we can to keep and attract them, not push them away.'DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
Share or comment on this article:
Bank levy 'will hurt growth', OakNorth boss warns
