The City’s Loyalty to Labour Pays Off in Low-Growth Budget

The City of London has kept close to the Labour government, even through the setbacks of the past few months. In Wednesday’s budget, this tactic paid off.

Chancellor of the Exchequer Rachel Reeves didn’t go ahead with an additional bank tax, which could have raised about £2 billion ($2.6 billion) annually from the sector. The idea had been trailed repeatedly over the summer and again as the budget approached, sending shares in lenders sharply lower each time.