John Healey ‘poised’ to target banks with Budget tax raid
John Healey is set to raise taxes on banks when he delivers his first Budget at the end of the month, according to new reports. The Chancellor has faced fierce lobbying from the left of the Labour party and trade unions to slap higher taxes on the sector following the bumper profits reaped by industry [...]
Finance Secretary John Healey is rumored to raise taxes on banks when he unveils the first Budget of the year, according to recent reports. Labour party members and unions have been pushing for higher taxes on the sector following the industry's substantial profits this year. Healey intends to target the banking sector for a financial raid in order to balance the books on October 28.
The most straightforward option for Healey would be to increase the banking surcharge, currently set at three percent, a reduction from eight percent under the previous Chancellor Jeremy Hunt in 2023. This increase could generate around £2bn annually. However, some have suggested a more aggressive approach with a windfall tax on the banks' profits, potentially raising up to £19bn from the major lenders such as Natwest, Lloyds, Barclays, and HSBC.
In an interview in Bangkok for the IMF summit, Healey stressed the banks' integral role in the country's economic future, but didn't reveal specifics on fiscal policy. He emphasized the need to address challenging fiscal conditions.
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