CFO criticism of temporary tax link
A top Lloyds Banking Group executive has criticised the chancellor for linking bank tax increases to energy bill support for UK households, warning the government against extending the higher levy beyond March 2028. Chancellor John Healey announced plans to double the bank surcharge from 3 percent to 6 percent starting in January, describing it as a time-limited 15-month measure to fund immediate energy bill support. However, Lloyds chief financial officer William Chalmers questioned the decision to tie bank taxes to energy costs during an earnings call, stating he saw no obvious linkage between the two and arguing that banks need to lend into the real economy to secure growth.
Third-quarter financial results
The comments accompanied Lloyds revealing that its third-quarter pre-tax profits almost doubled from a year earlier, rising from £1.2bn to £2.3bn. The increase largely reflected the £800m hit the bank took last year after setting aside funds for motor finance compensation. Results were also supported by a 10 percent rise in net interest income as higher interest rates benefited the lender.