London's Financial Sector Keeps Faith in Labour Government Despite Budget Setbacks

The City of London has benefited from its close relationship with the Labour government, as Chancellor Rachel Reeves did not implement an additional bank tax in the budget, which could have raised £2.6 billion annually. Bankers, who have met with Reeves regularly, support her goals of financial stability, co-operation with Europe, and pro-growth regulators. However, they are concerned about the government's lack of progress in industrial strategy. Banks such as JPMorgan, Lloyds, HSBC, NatWest, and Barclays announced plans to lend billions of pounds to businesses and households.