Mark Kleinman: Healey unlikely to resist clamour for bank windfall tax
Mark Kleinman is Sky News’ City editor and the man who gets the Square Mile talking in his City AM column. The sense of déjà vu among Britain’s bank chiefs is palpable. Eight weeks ahead of new Chancellor John Healey’s inaugural fiscal statement and the industry is engaged in another frantic round of lobbying against tax rises. This [...]
Mark Kleinman, Sky News' City editor, highlights that Chancellor John Healey is unlikely to resist the growing pressure for a bank windfall tax. As the new fiscal statement approaches, industry lobbying against tax increases is intensifying, particularly after experiencing strong half-year earnings. The TUC is pushing for a rise in the banking surcharge from 3% to 8% of lenders' profits, further fueling calls for a tax on the industry's significant profits.
Despite the industry's arguments about competitiveness risks and higher borrowing costs, many believe it is too tempting for Healey to ignore, potentially leading to a temporary tax increase as part of reforms to the ring-fencing regime. The AA and RAC, two long-standing insurance providers, are preparing for sales or stock market listings, with potential suitors including Allianz and Lloyds Banking Group.
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