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UK Bank Stocks Slump as Windfall Tax Talks Escalate

August 31, 2025

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The Sunday Guardian

UK bank shares plunge amid speculation of windfall tax hitting profits.

- CORRESPONDENT

Shares of Britain's biggest banks fell sharply on Friday, erasing billions in market value amid fears that the government may impose a windfall tax on financial institutions. Barclays, NatWest, and Lloyds were among the hardest hit, with stock values tumbling as much as 6 percent in early trading. The proposed levy would target extraordinary profits generated during years of low interest rates and pandemic-era policies that disproportionately benefited banks.

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