UK chancellor likely to raise bank taxes in next week's budget

Summary

The Guardian reports that Chancellor John Healey is likely to increase taxes on banks in his budget next week, as part of efforts to stay within the fiscal rules by finding money from somewhere. Business columnist Nils Pratley writes that banks argue higher taxes on them would raise deposit and loan costs and harm growth. He says the argument is coherent in economic theory but that the chancellor faces competing demands, and that a small increase in the bank surcharge would not seriously undermine the flow of capital, provided Healey does not go overboard. Pratley describes tapping the banks as a reasonable policy, or at least better than most alternatives.

Timeline

1. The Guardian

   20 Oct 2026, 08:00 UTCSource ↗

   The Guardian says a modest increase in bank taxes would not be the end of the world for lenders, and that Chancellor John Healey is likely to raise bank taxes in his budget next week, which the paper had revealed the previous week.