Bank share prices tumble after calls for tax on profits

The share prices of leading UK banks have tumbled following calls for the government to introduce a new tax on banking profits.

Traders and investors have reacted to the Institute for Public Policy Research (IPPR) saying a windfall tax could raise up to £8bn a year for the government.

The think tank said the policy would compensate taxpayers for losses on the Bank of England's cash printing drive.

While the Treasury has not commented on any policy, concerns led to NatWest, Lloyds and Barclays being the biggest fallers on the main index of the London Stock Exchange early on Friday.

NatWest and Lloyds share prices were down by more than 4%, and Barclays had dropped by more than 3% in early trading.