The Newshound

Healey's Budget bank tax raid sends Lloyds and NatWest shares tumbling more than 2%

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.

Chancellor John Healey is expected to reverse Jeremy Hunt's 2023 cut to the banking surcharge — restoring it from 3% to as high as 8% — raising around £2bn a year to plug a multibillion-pound hole in the public finances ahead of his October 28 Budget. City figures have warned the move contradicts Healey's own IMF summit praise of banks as "a jewel in the British economic crown," with one industry source calling it "very surprising." Lloyds and NatWest both shed more than 2% on Friday, leading falls on the FTSE 100, while the broader index still ended the week up 3.1%.

JP Morgan boss Jamie Dimon previously warned he could "reconsider" his £10bn Canary Wharf mega-tower investment if Britain became "hostile to banks."

TUC chief Paul Nowak urged Healey to go even further, to 16%, claiming that could raise £24bn over four years from banks making "a billion pounds a week."

Bank of England Governor Andrew Bailey separately played down inflation fears in Bangkok, saying second-round effects were "quite subdued" — giving markets some relief.

MoreLBCFTSE forges ahead but banks stutter on tax threatDaily MailWhy the Chancellor's bank tax could be bad for youBBC News - BusinessBanks expect to be hit with higher taxes in BudgetLBCBank shares drop on reports Chancellor planning Budget tax raidCity A.M.What could a bank tax raid mean for JP Morgan’s Canary Wharf mega-tower?City A.M.Midday Markets: The one tax you could bank onCity A.M.Healey’s ‘mixed messages’ on bank tax leave City blindsidedThe SunJohn Healey must steer a course away from the tax ‘doom loop’ hell to bolster growth – as Chancellor looks to raid banksGB NewsLabour set for bank tax raid as John Healey scrambles to raise funds ahead of BudgetThe MirrorChancellor John Healey 'planning to hike taxes on bank profits in Budget'City A.M.John Healey ‘poised’ to target banks with Budget tax raidmarketscreener.comStocks edge up as banks weigh on FTSE 100 - marketscreener.com
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