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flag UK think tank proposes taxing banks to fund public services, causing bank shares to fall by up to 4%.

flag The Institute for Public Policy Research (IPPR) has proposed that UK Chancellor Rachel Reeves impose a windfall tax on banks to raise up to £8 billion annually for public services. flag The suggestion is in response to the Bank of England's bond-buying program, which has cost taxpayers around £22 billion a year. flag The IPPR recommends a "QE reserves income levy," similar to a 1981 tax, to recover this money. flag This proposal has caused UK bank shares to drop by up to 4%. flag Bank executives warn that higher taxes could stifle economic growth.

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