Business & Finance
Healey reportedly poised to raise bank taxes in October budget
Options under discussion include restoring the bank surcharge to 8%, which could raise over £2bn a year.
The short version
- Chancellor John Healey is reportedly poised to tax Britain's banks in his 28 October budget, to offset war-related public finance damage.[The Guardian]
- Senior banking executives told the BBC they expect the sector to be targeted when the budget is announced in two weeks.[BBC News]
- Reversing Jeremy Hunt's cuts to the bank surcharge would raise upwards of £2bn a year, and TUC analysis puts the figure at £2.25bn.[The Guardian]
- UK Finance and Conservative leader Kemi Badenoch have warned that further bank tax rises would weaken competitiveness and investment.[The Guardian · BBC News]
Key facts
- Healey is reported to plan bank tax increases in the 28 October budget to offset war-related public finance damage.[The Guardian]
- Reversing Jeremy Hunt's cuts to the bank surcharge would raise upwards of £2bn a year, according to reporting.[The Guardian]
- TUC analysis states that a surcharge increase of this kind would raise £2.25bn a year.[The Guardian]
- Senior banking executives told the BBC they expect the sector to be targeted in the Budget scheduled in two weeks.[BBC News]
- UK Finance warned that further bank tax increases would weaken competitiveness, discourage investment and job creation.[BBC News]
- Conservative leader Kemi Badenoch cautioned against further banking tax rises, citing a higher effective tax rate than other major global financial centres.[The Guardian]
- Industry figures believe the surcharge would probably be raised back to 8% from 3% at present.[The Guardian]
What remains uncertain
- The budget measures have not been officially announced, and the reporting relies on unnamed understanding and expectations, so the final shape is unconfirmed.[The Guardian · BBC News]
- Whether the surcharge will return to 8% is an industry-figure expectation, not a confirmed government plan.[The Guardian]
Sources
Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.
- John Healey poised to raise taxes on banks in budgetThe Guardian - World
- Banks say Healey is planning Budget tax raid on their profitsBBC News - Business