Nationwide has estimated that a new banking tax introduced in the July Budget may cost it £300 million, affecting their ability to lend.

Nationwide is Britain’s second biggest provider of home loans, providing more than a quarter of total net lending to the British housing market of the past year. The building society have announced that the changes could could the equivalent of £10 billion worth of consumer lending.

Chief Executive Graham Beale argues that the budget should have recognised the difference between building societies and banks. He said:

“This represents a missed opportunity to support diversity by acknowledging that building societies are different to banks and to recognise the contribution Nationwide and other mutuals make by lending to the UK economy, and the housing market in particular.”

Nationwide reported a 52 percent increase in first-quarter underlying profit to £400 million.