IMF suggests UK cut spending instead of taxing banks

Summary

The IMF suggested the UK cut spending rather than raise taxes on banks as John Healey prepared his 28 October budget, The Guardian's live coverage reports. The Guardian had earlier reported Healey was poised to tax banks to help offset the Middle East war's damage to public finances. Its live coverage also cited an IG analyst who called a bank-tax risk a base case, saying Lloyds and NatWest would likely be most affected, Barclays partly exposed and HSBC least exposed.

Timeline

1. The Guardian

   15 Oct 2026, 16:17 UTCSource ↗

   The Guardian reports that John Healey is poised to tax Britain's banks in his 28 October budget to help offset the Middle East war's damage to public finances.

2. The Guardian

   16 Oct 2026, 11:07 UTCSource ↗

   The Guardian's live coverage reports that the IMF suggested the UK cut spending rather than raise taxes on banks as Healey prepared his budget, and cites an IG analyst who called the tax risk a base case, with Lloyds and NatWest likely to be most affected.