The £8 billion VAT loophole for banks and wealth managers - Richard Murphy

13th August 2025

Rachel Reeves is said to face a £40-50 billion budget shortfall.

One fair, simple solution? VAT on financial services.

Right now, banks, wealth managers, pension advisers, and mortgage brokers don't charge VAT – a loophole that overwhelmingly benefits the wealthy.

Charging the standard 20% rate could raise £8 billion a year and would hit those most able to pay, not ordinary people.

In this video, I explain this exemption, why it’s unjust, how post-Brexit Britain can remove it, and why Labour needs to decide whether it will tax the wealthy or protect the City.