MPs open probe into leak of Healey’s Budget bank tax hike

The Treasury committee has initiated an investigation into a possible leak of Chancellor John Healey's announcement to double the UK banking surcharge, which was leaked to the press prior to the Budget speech. The committee's inquiry was prompted by the timing of the leaked information, which emerged in the media hours before the Chancellor delivered his Budget address.

Treasury Permanent Secretary James Bowler confirmed that a government-led investigation, conducted by the Government Security Group, was underway to explore the leak. Bowler stated that he had been assured no banks, their representatives, or trade bodies had been briefed about the changes to the bank corporation tax surcharge before the Budget's publication and the Chancellor's statement to the House.

However, Bowler noted that a "necessary widening of the circle of knowledge within the government" was required ahead of the Budget's delivery. The Treasury committee's chair, Dame Meg Hillier, expressed skepticism about the leak inquiry, suggesting it would likely uncover no evidence of a breach but provide reassurance for future inquiries.

Healey increased the banking surcharge to six percent for 15 months in his Budget, while Bloomberg reported earlier that the tax would be raised below the eight percent initially anticipated and would be temporary. Shares in Lloyds, Natwest, and Barclays surged following the reports, as the sector reacted positively to the softer-than-feared tax increase.