UK bank shares fall as City fears budget tax raid; US trade deficit surges – as it happened

<p>Calls for ‘Thatcher-style tax on bank profits’ to raise billions of pounds rattle bank shares</p><ul><li><p><a href="https://www.theguardian.com/business/2025/aug/29/uk-bank-shares-tumble-after-call-for-windfall-tax-on-lenders-in-budget">UK bank shares tumble after call for windfall tax on lenders in budget</a></p></li></ul><p><strong><br></strong></p><p><strong>With bank shares sliding, investors are piling into defence stocks instead.</strong></p><p><strong>Babcock</strong> (+1.4%), <strong>Melrose</strong> (+0.95%) and <strong>BAE</strong> <strong>Systems</strong> (+0.7%) are all among the FTSE 100 risers, as optimism over a breakthough in the Russia-Ukraine war fades.</p><p>They are also talking again about a special extra profit tax for banks - Rayner suggested upping total take from 28% to 30%. Do you know how much this will raise? Based on OBR forecasts it would bring in an extra</p><p>&lt;drum rolls&gt;</p> <a href="https://www.theguardian.com/business/live/2025/aug/29/uk-business-confidence-rises-economy-fears-stock-market-bonds-inflation-business-live-news-updates">Continue reading...</a>