A possible UK bank tax could hit Canada, prompting Canadian lenders to monitor policy shifts in London closely.
Robert Jenrick, Reform UK's Treasury spokesman, told a conference of City industry representatives that the party has not yet committed to a specific levy on banks, but warned investors to "watch this space".
The party's leader Nigel Farage has floated the idea of taxing banks simply because he "doesn't like them," and suggested that any future measure would target the sector's high profitability.
In the same remarks, Jenrick said the party believes Chancellor John Healey will likely target banks in the upcoming budget, describing the sector's record profits as "low‑hanging fruit" for revenue.
Reform UK also raised the prospect of ending the Bank of England's practice of paying interest on reserves, a move the party claims could save taxpayers £40 billion.
Deputy leader Richard Tice and Labour MP Louise Haigh have both criticised the central bank's quantitative‑tightening programme, echoing Farage's earlier comments in Davos about taxing banks after his personal experience with NatWest's Coutts.
Jenrick said he has written to major banks outlining Reform's plan for £80 billion in spending cuts, primarily through welfare reform, and indicated a budget could be delivered within the first 100 days of a potential government.
Former Chancellor Rachel Reeves has previously ruled out new bank levies, noting that existing levies already add to corporate tax burdens and have generated about £65 billion in revenue over two budgets.
With the UK's fiscal headroom under pressure from the ongoing Iran conflict, speculation about a bank tax is intensifying, and Jenrick also suggested reforms to the Monetary Policy Committee, proposing the inclusion of private‑sector experience alongside academic economists.