The Newshound

Banks expect to be hit with tax rise in Healey's October 28 Budget, senior executives warn

Kristalina Georgieva and John Healey at the IMF Meetings in Bangkok. The Chancellor told reporters departments must "manage with the budgets we've got" ahead of the October 28 Budget.
Kristalina Georgieva and John Healey at the IMF Meetings in Bangkok. The Chancellor told reporters departments must "manage with the budgets we've got" ahead of the October 28 Budget.

Senior banking executives have told the BBC they expect the sector to be targeted in Chancellor John Healey's first Budget on October 28, with one option — reversing Jeremy Hunt's cut to the bank surcharge — set to raise upwards of £2bn a year. Healey, speaking at the IMF meetings in Bangkok, praised banks as a 'jewel in the crown' of the British economy but refused to rule out a tax raid, leaving the City on edge. He has reportedly already decided to tap the financial sector to offset the damage the Iran war has inflicted on public finances. Inflation is forecast to exceed four per cent in early 2027, and UK government borrowing costs have hit a 28-year high.

The UK's four largest lenders — HSBC, NatWest, Barclays and Lloyds — generated £200bn in pre-tax profits over the past five years, fuelling union calls for a windfall tax.

Industry body UK Finance warned higher bank taxes would 'weaken competitiveness, discourage investment and job creation' and push up borrowing costs for households.

Healey also signalled departments should 'manage with the budgets we've got', hinting pay rises for doctors and nurses may not be fully funded.

MoreBBC News - BusinessBanks expect tax increase in Healey's first BudgetFinancial TimesHealey promises to ‘stay the path’ on reducing UK deficitDaily MailHealey hails banks as a 'jewel in the crown of the British economy'AOL News UKJohn Healey vows to give ‘breathing space’ to consumers and businesses in first budgetCity A.M.Healey promises Budget will ‘meet the moment’LBCChancellor hints public should prepare for tough Autumn budgetEvening StandardBudget will have to reflect ‘tough time’, Healey says during IMF visitThe GuardianJohn Healey poised to raise taxes on banks in budgetDaily MailIMF hands Healey a Budget boost - now he must heed its call to tackle debt, says ALEX BRUMMERReutersUK's Healey says banks are key to economy but keeps tax options open - ReutersBloomberg.comBanks Are Part of ‘Jewel’ in UK Economic Crown, Healey Says - Bloomberg.comBloomberg.comUK’s Healey Says He Will ‘Stay The Path’ On Deficit Reduction - Bloomberg.com
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