John Healey poised to raise taxes on banks in budget
Summary
Chancellor John Healey plans to increase taxes on banks in the UK budget to help cover the cost of the war in the Middle East and reduce government debt. He aims to raise the bank surcharge, a tax on bank profits, from 3% back to 8%, which could bring in over £2 billion a year.Key Facts
- Healey wants to raise more money from banks to offset costs from the Middle East conflict and rising government borrowing.
- The bank surcharge was cut from 8% to 3% by Jeremy Hunt, but Healey is likely to reverse this cut.
- The UK’s four biggest banks made £200 billion in pre-tax profits over the last five years.
- The increased surcharge could raise about £2.25 billion annually.
- Banks have warned higher taxes may hurt investment and cause jobs to move out of the UK.
- The International Monetary Fund praised the UK’s efforts to reduce debt but urged continuing the plan.
- Bank leaders recently met Healey but received no promises that taxes would stay the same.
- Specialist banks like Revolut and Shawbrook want changes to the profit threshold for the surcharge.
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