It has been reported that the UK banking industry is intensifying its lobbying efforts to oppose the new Labour government's proposal to raise taxes in next month's first budget, due to concerns that the British government may use the banking industry to fill the public finance gap.

According to three sources, British Prime Minister Keir Starmer and Chancellor of the Exchequer Rachel Reeves have not indicated that banks will have to pay higher taxes, but Starmer recently mentioned that the burden will fall on those who have broader shoulders, which has raised concerns.

Under the wave of interest rate hikes, banks are making a lot of money.

In recent years, against the backdrop of rising interest rates, banks have made substantial profits.

Two sources said that Reeves will meet with senior representatives of the banking industry in the next few days, and bankers are expected to discuss the issue of raising the bank profit tax.

A spokesperson for the UK Treasury said they would not comment on 'speculation about tax changes outside the event of public finance'.

Insiders expect the UK Treasury to seek an increase in existing surcharges.

Insiders say this is the easiest way for Rives to fill the £22 billion ($28.8 billion) public finance gap in the October 30 budget.

They added that this would be much easier than cutting the interest on the reserves held by the UK banking industry at the Bank of England, as the latter could distort the effects of UK monetary policy.

In February of this year, HSBC Holdings, the UK's largest bank, announced a 78% increase in pre-tax profit to £30.3 billion. Competitors such as NatWest and Barclays also reported similarly strong performance.

Last week, the media quoted a former government official as saying that a "carefully designed" tax should be imposed on banks, causing UK bank stocks to fall.

The bank levy was introduced in 2011 to curb excessive risk and reckless expansion after the global financial crisis.

Although the industry has accumulated billions of pounds in capital since then, no UK government has seriously considered phasing out this revenue-raising tool.

Opposition to the proposal is growing.

A spokesperson for the British Bankers' Association, which represents the UK banking industry, said the association is increasingly aware of these concerns.

The spokesperson stated that the industry organization is preparing to once again call for the complete abolition of bank taxes and corporation tax surcharges in its report before submitting the budget to the UK Treasury. The UK Treasury will accept feedback until September 10.

The British Bankers' Association said, 'Banks based in the UK pay significantly higher tax rates than banks in New York. Our analysis shows that in the coming years, these banks' tax rates are expected to be significantly higher than those of other European banks.'

Simon Youel, Policy and Advocacy Manager of the campaign group Positive Money, said that any measures to increase bank surcharges or bank taxes should not be seen as a tax increase, but rather as a reversal of the Conservative government's tax cuts to banks.

Stammer and Reeves will host the UK Annual Investment Summit next month, where they hope to persuade international investors with billions of pounds in capital to fund their plans and revive UK economic growth.

A source said, 'All the legislation introduced last year was aimed at creating a more competitive environment and had the support of the Labour Party.'

'If something like this happens, the entire industry will feel confused and disappointed. The banks will certainly not give up.'