HSBC and StanChart Chiefs Push Back on UK Tax Rises and Office Mandates

HSBC Chief Executive Officer Georges Elhedery warned that any move by Chancellor Rachel Reeves to raise taxes on banks in the autumn budget could erode lenders’ capacity to invest and hamper UK economic growth. Speaking after the bank reported a 29% drop in second-quarter pre-tax profit to $6.3 billion, Elhedery noted that British lenders already face an effective tax rate of about 45%, among the highest in major financial centres. Elhedery’s comments add to recent lobbying by sector peers who argue that higher levies would undermine Labour’s goal of making the City a pillar of its growth strategy. UK banks currently pay the 25% headline corporation tax plus a 3% surcharge and a balance-sheet bank levy. Separately, Standard Chartered CEO Bill Winters said he sees no need to impose stricter office-attendance mandates on senior staff, contrasting with rivals that are tightening in-office requirements. In a Bloomberg Television interview, Winters also criticised banks that have relaxed their commitments to reach net-zero emissions, saying “we work with adults” and should trust employees while maintaining climate goals.