{
  "id": 15720448,
  "title": "A modest increase in bank taxes is not the end of the world for lenders | Nils Pratley",
  "url": "https://urgent.news/2026/10/20/a-modest-increase-in-bank-taxes-is-not-the-end-of-the-world-for",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-20T08:00:20.000Z",
  "source": {
    "name": "Guardian Business",
    "slug": "guardian-business",
    "url": "https://www.theguardian.com/business/nils-pratley-on-finance/2026/oct/20/modest-increase-bank-taxes-not-end-of-world-for-lenders"
  },
  "original_language": "en",
  "account": "The chancellor, John Healey, is reportedly expected to make a modest increase in bank taxes in his upcoming budget. While the proposal may raise concerns among some stakeholders, it is unlikely to have a significant negative impact on the banking sector and the economy as a whole. High interest rates and low defaults currently make bank operations relatively favorable, reducing the risk of any major disruptions. Moreover, Healey's plans are expected to consist of minor adjustments to the existing surcharge on bank profits, potentially generating an additional £2 billion in revenue. This adjustment is projected to have a negligible effect on bank profits, which are already performing well. Even if the surcharge is doubled, the impact on UK banks' profits would be limited to around 2%, with a slightly larger impact for banks focused on domestic markets. Consequently, the overall cost of capital for banks would not experience a drastic change, and shareholders would still be in a favorable position. Additionally, the government could explore other avenues for raising funds, such as revising stamp duty regulations or modifying the way bank deposits are remunerated by the Bank of England. While some industry representatives may express discontent over the proposed tax hike, the modest increase in bank taxes is considered a reasonable and less disruptive option compared to other alternatives, such as a windfall tax or interference with the central bank's independence.",
  "summary": "As long as Healey doesn’t go overboard, a small turn on surcharge dial will not seriously undermine flow of capital Everyone is familiar with the banks’ plea: raising taxes on them amounts to taxing the nation’s growth. If you increase how much banks pay, goes the argument, less interest will be paid on deposits and loans will cost slightly more, meaning we’ll all be worse off eventually. In…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}