City chiefs warn Healey that a bank tax raid in the Budget could drive businesses and capital out of the UK

From the Newshound archive · first published 9 October 2026 · last updated 10 October 2026.

A coalition of five influential City groups, led by the CBI's Rain Newton-Smith and UK Finance's David Postings, has written directly to Chancellor John Healey warning that hiking bank taxes in the autumn Budget could trigger a stampede of capital, talent and businesses out of Britain. The letter landed just days after Healey summoned the bosses of Britain's biggest banks to Downing Street to warn of a 'challenging fiscal picture', and the swift response suggests the meeting offered the City no reassurance whatsoever.

UK banks already pay total taxes amounting to 46 per cent of profits, compared with just 28 per cent in Dublin and 29 per cent in Paris, the City groups say.

Healey's fiscal headroom has been shattered by the Iran war, with economists forecasting the £23.6bn cushion left in the Spring Statement could already be cut in half.

Billionaires with £120 billion to their name have already fled Britain since Labour took power, and the City warns a bank surcharge hike could accelerate the exodus.