UK bank shares rise after reports of budget tax reprieve

A former banker at Jefferies Financial Group Inc.’s UK arm has been charged with insider dealing by the UK markets watchdog, marking a significant development in regulatory enforcement within the financial sector.

The UK government has announced the removal of tax exemptions for the Motability Scheme in the upcoming budget, a decision that is expected to impact many individuals reliant on this program for mobility assistance. This move comes as Chancellor Rachel Reeves prepares to unveil a budget that includes significant tax and spending measures.

Chancellor Rachel Reeves announced a freeze on fuel duty for five months, maintaining the rate at 52.95p per litre for petrol and diesel, while confirming a new 3p-a-mile charge for electric vehicles starting in 2028. This decision follows a temporary 5p cut in fuel duty introduced by Rishi Sunak, which will be reversed in stages from September 2026.

Chancellor Rachel Reeves announced the scrapping of the two-child benefit cap and confirmed the introduction of a mansion tax in the 2025 budget, following a leak by the Office for Budget Responsibility (OBR) attributed to a technical error. This budget aims to address the UK's ongoing cost of living crisis and is set against a backdrop of significant fiscal challenges.

The UK has revised its economic growth forecasts downward, projecting an average annual growth rate of 1.5% over the next five years due to downgrades in productivity. This adjustment reflects concerns about the country's economic performance and potential stagnation.

Chancellor of the Exchequer Rachel Reeves announced a £26 billion tax increase in a budget presentation intended to convey stability, but the release of key measures ahead of her speech caused market turmoil. The Office for Budget Responsibility mistakenly published the details online an hour before the announcement, prompting an apology and an investigation into the incident.

Chancellor Rachel Reeves is set to deliver her second budget on November 26, 2025, focusing on addressing the UK's cost of living crisis and a significant spending gap of at least £30 billion. The budget is expected to include tax increases and measures aimed at reducing living costs, amidst scrutiny from Labour MPs and the public.

The UK government is contemplating an increase in bill issuance to diversify its investor base, a strategy aimed at enhancing the development of sterling money markets and attracting new buyers, including stablecoin issuers.