Lloyds boss warns Reeves against hiking taxes on banks as profits rise 17%

Lloyds reported a 17% rise in pre-tax profits for the second quarter to nearly £2bn, driven in part by higher fees from its pension, insurance and investments business. Photograph: Stefan Rousseau/PA

The boss of Britain’s largest mortgage lender has warned Rachel Reeves that increasing taxes on banks in her autumn budget would damage Labour’s plan for the City of London to power an economic recovery.

Charlie Nunn, the chief executive of Lloyds Banking Group, said a rise in bank taxation “wouldn’t be consistent” with the chancellor’s overtures as the government pushes to reboot growth.