Ana Botín argues additional levies on banks hinder lending and economic growth amid calls for tax reforms in the sector.
Santander executive chair Ana Botín has criticized the UK’s bank tax policy, calling it economically irrational. The current system imposes a balance sheet levy and profit surcharge on banks, on top of a 30% corporate tax rate, which Botín argues discourages lending and investment.
The UK introduced these measures post-2008 financial crisis to curb risk-taking but has faced growing backlash from lenders. Banks avoided further tax hikes in last November’s Budget after pledging to expand lending, though the sector remains under scrutiny due to higher interest rate-driven earnings.
Botín’s remarks echo concerns from other banking leaders, including JPMorgan’s Jamie Dimon, who previously threatened to scale back UK operations over tax policies.