Italy’s government is weighing a new package of measures that would draw additional revenue from the banking sector as it drafts the 2026 budget. Options under discussion include a €1.5 billion levy on lenders’ profits, postponement of scheduled payments linked to deferred tax assets and a separate charge on share buybacks by listed companies. The proposals come two years after Rome imposed a 40% surcharge on banks’ so-called super-profits. Across the Channel, UK Chancellor Rachel Reeves faces mounting pressure to increase the tax burden on commercial lenders to help close an estimated £20 billion hole in the nation’s finances. A report by the Institute for Public Policy Research argues that taxing the interest banks earn on reserves held at the Bank of England could raise as much as £8 billion annually, while other ideas target windfall gains from taxpayer-backed deposits. The prospect of sharper fiscal measures sent shares in leading British lenders lower on Friday, and investors in Italian banks also turned cautious as policymakers in both countries debated the plans. The twin initiatives underscore a broader European trend of tapping bank profits to shore up strained government budgets.