Bank bosses warn Healey that a tax raid will drive capital and jobs out of the UK ahead of the October Budget

From the Newshound archive · first published 12 October 2026.

Chancellor John Healey met the chief executives of Barclays, HSBC, Lloyds, NatWest, Nationwide and Santander in Downing Street this week, but left them none the wiser on whether he will hike the bank surcharge or impose a windfall tax at the October 28 Budget. City grandees from UK Finance, TheCityUK and the CBI have written to Healey warning that raising taxes on banks risks pushing capital, people and businesses offshore. Former Conservative chancellor Jeremy Hunt has joined the chorus, warning that "capital is mobile" and that a mistake on bank taxes "could easily unravel".

PwC figures show UK banks already pay 46 per cent of profits in tax, compared with 28 per cent in New York and 29 per cent in Dublin.

Lloyds and NatWest shares have both fallen more than 7 per cent in the past month, with Barclays down almost 12 per cent, as City investors brace for the worst.

City fears are compounded by a separate warning that doubling gambling machine duty to 40 per cent could cost 16,000 jobs, close 1,500 betting shops and leave the Treasury £124 million worse off overall.