UK Bank Stocks Surge as Sector Avoids New Taxes in Budget Announcement

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Nov 26 2025

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Source: Reuters

Bank Shares Rise: British bank shares increased as Finance Minister Rachel Reeves did not propose new taxes on the sector, alleviating concerns that had caused stock declines earlier in the year.
Market Performance: Lloyds and NatWest saw significant gains of 3.8% and 2.5%, respectively, while HSBC and Barclays also rose, outperforming the broader FTSE 100 index.
Tax Speculation: Fears of a new levy on bank profits had previously impacted stock prices, but recent reports suggested that Reeves aims to encourage banks to lend more to businesses instead.
Profit Trends: British banks have experienced substantial profits post-COVID-19, with a 62% increase in bank share values since Labour's election victory in July 2024, driven by rising interest rates and resilient economic conditions.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.