Treasury minister says City experience ‘not a conflict’

LIVERPOOL, England — U.K. Treasury minister Emma Reynolds said Monday that her City experience is “not a conflict” amid speculation that the government will raise taxes on banks at the next budget.

During an interview in the POLITICO pub, Reynolds said she “learned a lot” about financial services when she worked as managing director of leading financial trade body TheCityUK after losing her seat in 2019. She returned to Westminster at the 2024 general election.

“I can’t describe myself as an economist, but it helped me, you know, improve my knowledge of economics and finance and see things from the point of view of big financial institutions, which I think is a good thing”, Reynolds said.

The City of London is lobbying hard against a windfall tax on the banks, as Labour seeks to balance the books.

Questioned on the departure from the U.K. of billionaire Chris Rokos — who pays £330 million a year in tax to the U.K. — Reynolds maintained that “we have to have rules.”

“We want to create the very best conditions for growth, for entrepreneurship,” she said. “But we have to have rules, and people who make a living here should pay taxes here.”

The Treasury minister would not be drawn on the budget, which will be announced in October, but said that the government is “not powerless” in dealing with financial insecurity caused by international crises.

“We do face big global economic headwinds and a very difficult geopolitical situation with the ongoing war, particularly in the Middle East, but also in Ukraine,” she said. “But we are not powerless to deal with those things, and we will do all that we can in the way that John [Healey] talked about earlier to further take further action to give families and businesses breathing space.”