Lloyds backs Reeves budget plans in spite of expected tax increases

Lloyds Banking Group has backed the Labour government's forthcoming budget and played down the impact of any tax increases, which it said would probably be part of a "constructive, pro-growth agenda".

- Kalyeena Makortoff

The chief financial officer of Britain's biggest mortgage lender, William Chalmers, said he would welcome a budget package that was consistent with government pledges to kickstart growth and investment in areas such as energy, infrastructure and housing.

The bank's support for Labour's agenda will come as a boost to the government as it faces criticism from some employers over plans to increase workers' rights and employer national insurance contributions (NICs) in Rachel Reeves's budget next Wednesday.