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The chief executive of Lloyds Banking Group has warned that a tax raid on the banks could harm lending to households and businesses.

In an exclusive interview with Sky News at the government’s regional investment summit, Charlie Nunn urged the chancellor to ignore calls for a windfall tax on commercial banks even though the sector is enjoying record profits.

“If we are going to have the ability and the confidence to continue to lend into the real economy, to help households and businesses invest, we need to make sure that the financial services system and Lloyds Banking Group really remains healthy in that context,” he said.

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Charlie Nunn was appointed Lloyds boss in November 2020. Pic: PA
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Charlie Nunn was appointed Lloyds boss in November 2020. Pic: PA

Britain’s four largest banks – HSBC, Barclays, Lloyds Banking Group and NatWest – posted record profits of £45.9bn last year and are on course for another bumper performance this year, thanks to higher interest rates.

Their financial success has raised speculation that the sector could be in the chancellor’s firing line at next month’s budget.

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Rachel Reeves could raise the bank surcharge – a levy on bank profits in addition to corporation tax.

The Conservative government cut the levy from 8% to 3% in 2023. Returning it to 8% could raise £2bn for a chancellor who needs to find anywhere up to £50bn to meet her fiscal rules.

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Chancellor faces tough budget choices

Some have suggested a separate windfall tax, which could raise closer to £8bn.

Mr Nunn said such a move risked undermining the health of a sector which underpins the country’s economic prosperity.

“Obviously, taxes are a matter for the government to look at. But it’s definitely one of the factors that impact our ability to support the real economy in the UK,” he said.

A raid on the banks would cause pain to a sector that is already facing substantial costs because of the car finance scandal.

Lloyds, one of the most exposed lenders, has set aside nearly £2bn to cover potential compensation arising from the Financial Conduct Authority’s (FCA) redress scheme.

The FCA established the scheme to draw a line under the long-running mis-selling scandal, in which lenders failed to disclose commission paid to brokers, meaning many customers ended up paying more than they should have for their car finance.

Under the FCA’s scheme, eligible customers – as many as 14.2 million – could receive an average of £700 each.

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Payouts due after motor finance scandal

There is mounting anger within the industry at the way the scheme, which is going out to consultation, has been set up. Mr Nunn said the proposal was too generous to customers and not proportionate to the harms actually caused to customers.

He did not rule out the possibility of a judicial review but, in the first instance, called for a rethink, warning that the current scheme risks scaring away investors, causing an exodus from the market and driving up the cost and availability of credit.

“When you look at the implication of what’s being proposed by the FCA, it’s going to potentially take 20 years of profitability of the car finance industry. And, what does that mean for invest ability in that industry and for other investors and businesses looking to invest in the UK? There’s real concern that this is going to create an invest ability issue,” he said.

“Our concern is will the industry continue to function? Will it support all customers across the whole of the UK that need finance? Will other investors be looking at this and wondering whether the UK is a place they should invest, if retrospectively we can take away 20 years of profits?”

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Rail worker who protected passengers during mass stabbing on Huntingdon train discharged from hospital

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Rail worker who protected passengers during mass stabbing on Huntingdon train discharged from hospital

The train crew member who was seriously injured while trying to protect passengers during a mass stabbing has been discharged from hospital.

Samir Zitouni, 48, known as Sam, was working on board the London North Eastern Railway (LNER) train from Doncaster to London when the attack began in Cambridgeshire on Saturday 1 November.

LNER said Mr Zitouni, who has worked for the firm for more than 20 years, was credited with helping to save multiple lives.

Mr Zitouni had been in a critical condition, having suffered multiple injuries in the incident, but was discharged on Saturday.

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Mahmood praises rail worker

His family said: “We are so grateful for the outpouring of support from the public, and very touched by all the kind words about Sam’s brave actions on the night of the attack.

“While we are really happy to have him home, he still has a significant recovery ahead and we would now like to be left in privacy to care for him as a family.”

Earlier this month, LNER said he has been a “valued member” of staff for over 20 years, working on board as a customer experience host.

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Train mass stabbing: A timeline of events

David Horne, managing director at LNER, said: “In a moment of crisis, Sam did not hesitate as he stepped forward to protect those around him.

“His actions were incredibly brave, and we are so proud of him, and of all our colleagues who acted with such courage that evening. Our thoughts and prayers remain with Sam and his family. We will continue to support them and wish him a full and speedy recovery.”

The attack is understood to have started shortly after the train left Peterborough, with passengers pulling the emergency alarms on the LNER service.

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Police believe train attacker filmed waving knife

Train driver Andrew Johnson, who served in the Royal Navy for 17 years, contacted a signaller and requested an unscheduled stop at Huntingdon station.

11 people were treated in hospital after the mass stabbing – nine were initially reported as having life-threatening injuries.

Anthony Williams, 32, was remanded into custody at Peterborough Magistrates’ Court on November 3, charged with 10 counts of attempted murder over the incident.

He will appear at Cambridge Crown Court on 1 December.

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Donald Trump confirms he will sue the BBC over Panorama edit – despite broadcaster’s apology

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Donald Trump confirms he will sue the BBC over Panorama edit - despite broadcaster's apology

Donald Trump has said he will sue the BBC for between $1bn and $5bn over the editing of his speech on Panorama.

The US president confirmed he would be taking legal action against the broadcaster while on Air Force One overnight on Saturday.

“We’ll sue them. We’ll sue them for anywhere between a billion (£792m) and five billion dollars (£3.79bn), probably sometime next week,” he told reporters.

“We have to do it, they’ve even admitted that they cheated. Not that they couldn’t have not done that. They cheated. They changed the words coming out of my mouth.”

Mr Trump then told reporters he would discuss the matter with Prime Minister Sir Keir Starmer over the weekend, and claimed “the people of the UK are very angry about what happened… because it shows the BBC is fake news”.

The Daily Telegraph reported earlier this month that an internal memo raised concerns about the BBC’s editing of a speech made by Mr Trump on 6 January 2021, just before a mob rioted at the US Capitol building, on its flagship late-night news programme.

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BBC crisis: How did it happen?

The concerns regard clips spliced together from sections of the president’s speech to make it appear he told supporters he was going to walk to the US Capitol with them to “fight like hell” in the documentary Trump: A Second Chance?, which was broadcast by the BBC the week before last year’s US election.

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Following a backlash, both BBC director-general Tim Davie and BBC News chief executive Deborah Turness resigned from their roles.

‘No basis for defamation claim’

On Thursday, the broadcaster officially apologised to the president and added that it was an “error of judgement” and the programme will “not be broadcast again in this form on any BBC platforms”.

A spokesperson said that “the BBC sincerely regrets the manner in which the video clip was edited,” but they also added that “we strongly disagree there is a basis for a defamation claim”.

Earlier this week, Mr Trump’s lawyers threatened to sue the BBC for $1bn unless it apologised, retracted the clip, and compensated him.

The US president said he would sue the broadcaster for between $1bn and $5bn. File pic: PA
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The US president said he would sue the broadcaster for between $1bn and $5bn. File pic: PA

Legal challenges

But legal experts have said that Mr Trump would face challenges taking the case to court in the UK or the US.

The deadline to bring the case to UK courts, where defamation damages rarely exceed £100,000 ($132,000), has already expired because the documentary aired in October 2024, which is more than one year.

Also because the documentary was not shown in the US, it would be hard to show that Americans thought less of the president because of a programme they could not watch.

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Banksy art theft lands burglar with 13-month prison sentence

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Sky’s Katie Spencer on what BBC bosses told staff on call over Trump row

Newsnight allegations

The BBC has said it was looking into fresh allegations, published in The Telegraph, that its Newsnight show also selectively edited footage of the same speech in a report broadcast in June 2022.

A BBC spokesperson said: “The BBC holds itself to the highest editorial standards. This matter has been brought to our attention and we are now looking into it.”

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Banksy art theft lands burglar with 13-month prison sentence

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Banksy art theft lands burglar with 13-month prison sentence

A man has been given a 13-month prison sentence for stealing Banksy’s famous Girl With Balloon print from a London gallery.

Larry Fraser, 49, of Beckton, east London, was sentenced on Friday after pleading guilty to one count of non-residential burglary at Kingston Crown Court on 9 October.

The print, one of the street artist‘s most famous, was stolen from a gallery in New Cavendish Street in London at around 11pm on 8 September last year.

The recovered artwork back in the gallery. Pic: Metropolitan Police
Image:
The recovered artwork back in the gallery. Pic: Metropolitan Police

Fraser used a hammer to smash his way through a glass entrance door at the Grove Gallery before stealing the artwork, which was valued at £270,000.

He concealed his identity with a mask, hooded jacket and gloves, but the Metropolitan Police’s Flying Squad was able to identify him and track him to a location streets away.

He was also caught on CCTV loading the artwork into a van before fleeing the scene.

A second man, 54-year-old James Love, was accused of being the getaway driver in the burglary, but cleared of stealing the print.

Larry Fraser. Pic: Metropolitan Police
Image:
Larry Fraser. Pic: Metropolitan Police

Damage to the Grove Gallery after the theft. Pic: Metropolitan Police
Image:
Damage to the Grove Gallery after the theft. Pic: Metropolitan Police

Fraser was arrested at his home address on 10 September, within 48 hours of the burglary, and charged the next day.

Officers were able to recover the artwork after executing a warrant on the Isle of Dogs. It has now been returned to the gallery.

Fraser pleaded to the court that he was struggling with a historic drug debt and agreed to steal the work “under a degree of pressure and fear”.

He said he did not know what he would be stealing, nor its value, until the day of the offence.

Fraser was caught on CCTV taking the artwork away from the gallery. Pic: Metropolitan Police
Image:
Fraser was caught on CCTV taking the artwork away from the gallery. Pic: Metropolitan Police

Jeffrey Israel, defending, said Fraser lived with his mother as her principal carer, and had only managed to “break his cycle of drug addiction” after his last prison sentence.

He added that it “would take a bold advocate” to suggest that the value of the print had increased by the burglary, but insisted “that is probably the reality”.

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Judge Anne Brown was unmoved, however, and said the offence was “simply too serious” for a suspended sentence.

“This is a brazen and serious non-domestic burglary,” she said.

“Whilst you did not know the precise value of the print, you obviously understood it to be very valuable.”

She added: “Whilst I am sure there was a high degree of planning, this was not your plan.”

However, Fraser may be eligible for immediate release due to time spent on electronic curfew.

Detective Chief Inspector Scott Mather, who led the Met’s investigation, said: “Banksy’s Girl With Balloon is known across the world – and we reacted immediately to not just bring Fraser to justice but also reunite the artwork with the gallery.

“The speed at which this took place is a testament to the tireless work of the flying squad officers – in total it took just four days for normality to be restored.”

The 2004 artwork was part of a £1.5m collection of 13 Banksy pieces at the gallery.

Gallery manager, Lindor Mehmetaj, said it was “remarkable” for the piece to have been recovered after the theft.

The 29-year-old said: “I was completely, completely shocked, but in a very, very positive way when the Flying Squad showed me the actual artwork.

“It’s very hard to put into words, the weight that comes off your shoulders.”

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