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City chiefs warn Healey that a bank tax raid will drive investment abroad ahead of Budget showdown

From the Newshound archive · first published 6 October 2026 · last updated 7 October 2026.

John Healey, Defence Secretary, left banking executives without any clarity on whether a windfall tax on lenders is coming after warning them Britain faces a "difficult" fiscal picture.
John Healey, Defence Secretary, left banking executives without any clarity on whether a windfall tax on lenders is coming after warning them Britain faces a "difficult" fiscal picture.

Bank bosses from Lloyds, Barclays, HSBC and NatWest sat face-to-face with Chancellor John Healey in Downing Street on Tuesday, warning him that higher levies would choke lending to small businesses and send international investors fleeing. Chris Hayward, policy chairman at the City of London Corporation, said he was "hugely concerned" a bank windfall tax would do lasting damage to the whole economy. Healey acknowledged a "difficult" fiscal backdrop but refused to tip his hand, leaving executives none the wiser on whether the Budget on 28 October will target banks. Healey must find nearly £5bn for the Defence Investment Plan after his fiscal headroom reportedly halved to around £12bn.

HSBC chief Georges Elhedery, attending by video link, warned that activist investors already make managing shareholder sentiment treacherous.

'Nobody came out any the wiser,' one attendee said after Healey repeated only that no tax decisions had yet been taken.

MoreThe TelegraphBank tax raid will hurt the economy, Healey is warnedDaily MailHealey holds showdown talks with banks amid fears of Budget tax raidMarketScreenerUK chancellor leaves banks guessing over windfall tax - TimesFinancial TimesHealey warns banks that UK faces ‘challenging’ fiscal picture but stays tight-lipped on taxBusiness MattersHealey tells bank chiefs no decision made on windfall tax - Business Matters
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