Business
Bank share prices tumble after calls for tax on profits
The share prices of leading UK banks have tumbled following calls for the government to introduce a new tax on banking profits.
Traders and investors have reacted to the Institute for Public Policy Research (IPPR) saying a windfall tax could raise up to £8bn a year for the government.
The think tank said the policy would compensate taxpayers for losses on the Bank of England’s cash printing drive.
While the Treasury has not commented on any policy, concerns led to NatWest, Lloyds and Barclays being the biggest fallers on the main index of the London Stock Exchange early on Friday.
NatWest and Lloyds share prices were down by more than 4%, and Barclays had dropped by more than 3% in early trading.
Charlie Nunn, the chief executive of Lloyds bank, has previously spoken out against any potential tax rises for banks in the Budget.
He said efforts to boost the UK economy and foster a strong financial services sector “wouldn’t be consistent with tax rises”.
The Treasury has been contacted for comment.
The IPPR, a left-leaning think tank, said a levy on the profits of banks was needed as the Bank of England’s quantitative easing (QE) drive was costing taxpayers £22bn a year.
The Bank of England buys bonds – essentially long term IOUs – from the UK government and corporations to increase bond prices and reduce longer term interest rates.
The Bank is selling off some of these bonds, and the IPPR said it is now making huge losses from both selling the government bonds below their purchase value and through interest rate losses.
The IPPR described those interest rate losses as “a government subsidy to commercial banks”, and highlighted commercial bank profits compared to before the pandemic were up by $22bn.
The tax suggestion comes as Chancellor Rachel Reeves faces the difficult task of maintaining her fiscal rules while finding room for spending promises in the upcoming autumn Budget.
Carsten Jung, associate director for economic policy at IPPR and former Bank of England economist, said the Bank and Treasury had “bungled the implementation of quantitative easing”.
“Public money is flowing straight into commercial banks’ coffers because of a flawed policy design,” he said.
“While families struggle with rising costs, the government is effectively writing multi-billion-pound cheques to bank shareholders.”
Speaking on BBC’s Today programme, Mr Jung said the £22bn taxpayer loss was roughly equivalent to “the entire budget of the Home Office every year”.
“So we’re suggesting to fix this leak of taxpayer money, and the first step would be a targeted levy on commercial banks that claws back some of these losses,” he said.
A tax targeting the windfall profits linked to QE would still leave the banks with “substantially higher profits”, the IPPR report said, while saving the government up to £8bn a year over the term of parliament.
But financial services body UK Finance said that a further tax on banks would make Britain less internationally competitive.
“Banks based here already pay both a corporation tax surcharge and a bank levy,” the trade association said.
The association said a new tax on banking would also “run counter to the government’s aim of supporting the financial services sector”.
Russ Mould, AJ Bell investment director, said the UK stock market had soured following the suggestion, with investors wondering “if the era of bumper profits, dividends and buybacks is now under threat”.
“The timing of the tax debate, fuelled by a report from think-tank IPPR, is unfortunate given it coincides with a new poll from Lloyds suggesting a rise in business confidence, despite cost pressures,” he said.
The Chancellor has worked hard since Labour won power to woo the City. In her Mansion House speech in November last year, Reeves said that banking regulation after the 2008 financial crisis had “gone too far”.
But she faces difficult fiscal decisions in the run-up to her budget, after the government watered down its planned welfare savings and largely reversed winter fuel allowance cuts – decisions which narrowed her budget headroom.
Charlotte EdwardsBusiness reporter, BBC News
Getty ImagesPizza Hut is to close 68 restaurants and 11 delivery sites in the UK with the loss of 1,210 jobs, after the firm running them fell into administration.
DC London Pie Limited, which operates Pizza Hut’s UK restaurants, appointed FTI Consulting as administrators on Monday.
However, Pizza Hut’s global owner Yum! Brands has agreed to save 64 restaurants, preserving 1,276 jobs.
Pizza Hut is well known for its family-friendly dining and salad bar, but its UK business has been struggling and had previously gone into administration less than a year ago.
DC London Pie had bought Pizza Hut UK’s restaurants from insolvency in January this year. The company also owns Pizza Hut franchises in Sweden and Denmark.
A spokesperson for Pizza Hut UK said: “We are pleased to secure the continuation of 64 sites to safeguard our guest experience and protect the associated jobs.”
Nicolas Burquier, managing director for Pizza Hut Europe and Canada, said: “This targeted acquisition aims to safeguard our guest experience and protect jobs where possible.”
He added that the immediate priority for Pizza Hut was “operational continuity at the acquired locations and supporting colleagues through the transition”.
Zoe Adjay, a senior lecturer in hospitality at the University of East London, said Pizza Hut had been “at the forefront of bringing fast food into the UK” in the 1970s, but had struggled to remain relevant amid increased competition.
“The pizza market has become a lot more upmarket,” she said. “There’s a lot more high-end pizza and they’ve taken a huge market share.”
Ms Adjay added that Pizza Hut had also failed to establish itself on social media in the same way as some of its competitors.
Increased operating costs and “ongoing consumer caution” will likely have contributed to Pizza Hut’s challenges, according to Danni Hewson, head of financial analysis at AJ Bell.
“DC London Pie had rescued Pizza Hut’s UK operations from insolvency less than a year ago, but making a success of a big-name casual dining businesses is a tough job.
“Taking back the brand looks a smart move by Yum! Brands as it has decades of data about how pizza lovers like to consume and exactly what factors need to coalesce to make a location a success.”
Business
Explained: India launches e-Arrival Cards for foreign travellers — how it works & how to apply – The Times of India
The government has rolled out a new digital system for foreign nationals entering India. Beginning October 1, 2025, travellers can now submit an electronic arrival form instead of the traditional paper card. The initiative aims to simplify entry formalities, improve efficiency at airports, and enhance data accuracy. As per ET, the e-arrival card is part of the government’s broader efforts to digitise immigration procedures and make travel to India smoother for international visitors.
How to apply for the e-Arrival Card
According to ET, the e-arrival card can be filled and submitted online through three official platforms — the Indian visa website (https://indianvisaonline.gov.in/), the Bureau of Immigration website (http://boi.gov.in), or the Su-Swagatam mobile app. Travellers can complete the process up to 72 hours before their scheduled journey to India.
What happens to the paper form?
The government has announced that the paper arrival form will continue to be accepted for the next six months. However, as per information shared on the US Embassy’s website, foreign travellers are encouraged to opt for the e-arrival option for “a faster and more efficient customer experience.” This digital alternative aims to reduce queues and manual data processing at airports while allowing travellers to complete formalities in advance.
How to fill the e-Arrival Card
Passengers must visit https://indianvisaonline.gov.in/earrival/ to access the new digital form. The form requires accurate personal, travel, and contact details. Under ‘Personal Details’, travellers must provide their full name (as per passport), nationality, passport number, and purpose of visit. In the Arrival Details section, travellers should enter their arrival date and list countries visited in the past six days before submitting the form online.
Difference between e-Arrival Card and e-Visa
According to the US Embassy, the e-arrival form is entirely separate from the e-visa process. “US citizens should note that this arrival form change is separate from the e-visa application process. US citizen travellers are now able to travel to India with a valid e-visa (or physical visa from an Indian embassy/consulate) AND a valid e-arrival form,” the embassy clarified.
New Delhi: Tesla and SpaceX CEO Elon Musk on Monday extended Diwali greetings to Indians and millions of people celebrating the festival of lights across the world.
Musk reposted a Diwali greeting on the social media platform X, saying “Happy Diwali”, while tagging a post from his company’s subsidiary Tesla India, saying, “Wishing you an electrifying and safe Diwali.”
Musk on October 2 became the world’s first person ever to reach a net worth of $500 billion, followed by Oracle’s Larry Ellison at a distant second. According to Forbes’ billionaires index, Musk’s net worth stood at $500.1 billion on October 2.
His feat came as Tesla shares rose over 14 per cent so far this year, closing 3.3 per cent higher on Wednesday (US time), adding more than $6 billion to Musk’s wealth.
Musk’s AI startup xAI was valued at $75 billion (as of July). xAI was targeting a $200 billion valuation after a fundraise, although Musk said the company was not raising capital at that time.
Meanwhile, Tesla has started delivering standard Model Y to its customers in India, while the delivery of the Long Range variant is going to commence soon.
The electric vehicle maker has announced that the new Model Y owners will be provided with a complimentary Wall Connector, allowing convenient installation in their parking space for easy home charging. The Model Y is available at a starting price tag of Rs 59.89 lakh.
In August, Tesla inaugurated its first showroom in the National Capital Region (NCR) at the Worldmark 3 complex in Aerocity, marking the electric carmaker’s second retail location in India (after Mumbai).
Several other global tech industry leaders also extended their Diwali wishes during the day. Apple CEO Tim Cook shared wishes along with sharing an image taken by an Indian photographer with an iPhone 17 Pro Max. Google CEO Sundar Pichai also extended his greetings for the festival of lights.
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