Lloyds executive criticises Healey for linking bank tax rises to energy bill support
Summary
Lloyds CFO William Chalmers criticized the UK government’s plan to raise the bank surcharge to fund short-term energy bill support. He urged the government to keep the increase temporary, arguing that predictable taxes and competitive banks support lending and economic growth.Key Facts
- Chancellor John Healey announced that the bank surcharge would rise from 3% to 6% starting in January.
- The planned increase would last 15 months, through March 2028, and the government says it will help pay for immediate energy bill support.
- Chalmers said he saw no clear link between energy prices and bank taxes and urged the government not to extend the higher levy.
- The Treasury has said it will legislate for the 15-month limit in the financial bill.
- Some banking industry figures privately worry a future energy crisis could lead to an extension of the increase.
- Lloyds said it paid about £1.8 billion in corporate taxes year to date and wanted a stable, predictable tax regime.
- Lloyds reported third-quarter pre-tax profit of £2.3 billion, up from £1.2 billion a year earlier; the comparison was affected by an £800 million motor finance compensation provision in the prior year.
- Lloyds also reported a 10% rise in net interest income, the difference between interest earned from borrowers and interest paid to savers.
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