{
  "id": 16889827,
  "title": "Barclays and Lloyds shares surge on reports bank tax will be ‘lower than expected’",
  "url": "https://urgent.news/2026/10/28/barclays-and-lloyds-shares-surge-on-reports-bank-tax-will-be-lower",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-28T11:23:36.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/barclays-and-lloyds-shares-surge-on-reports-bank-tax-will-be-lower-than-expected/"
  },
  "original_language": "en",
  "account": "Shares in Britain's major banks, Barclays and Lloyds, experienced significant gains ahead of Chancellor John Healey's first budget, following reports that the tax on the sector would be lower than initially anticipated. The banking sector had been bracing for a tax hike, despite efforts from city officials to defend against it. Healey was anticipated to raise the banking surcharge, which currently stands at 3%, but the increase would only be temporary and would not return to its previous level of 8% from 2023, according to Bloomberg. Lloyds shares rose by 2.2% to 104.40p, while Barclays increased by 2% to 430.50p and NatWest saw a 1.7% rise to 142.95p. The banking surcharge contributed £1.2bn to the Treasury's coffers last year, with each percentage point increase potentially raising an additional £400m annually. Healey had cautioned bank executives about the \"challenging\" financial landscape in his meeting with them earlier this month. Notably, leaders from Wall Street's major banks, such as Citibank's Dame Jane Fraser and JP Morgan's Jamie Dimon, expressed concerns about the potential impact of any additional tax on UK banks. Dimon, in particular, cautioned that a hostile environment towards banks could lead him to reconsider his investment, which is expected to inject up to £10bn over the next six years into the local economy. The UK's four largest banks – NatWest, Lloyds, HSBC, and Barclays – generated a combined £29bn in pre-tax profits for the first half of the year. Several firms also raised their income forecasts due to the rising interest rates prompted by the US-Iran conflict. The Trade Union Congress, a prominent advocate for a higher bank tax rate, argued that banks must contribute their \"fair share\" following their substantial profit margins.",
  "summary": "Shares in Britain’s banking giants surged ahead of John Healey’s maiden Budget after reports the Chancellor would raise taxes on the sector by a lower rate than originally expected. The UK’s lenders have been bracing for a tax raid despite defensive lobbying from City chiefs. Healey is expected to increase the banking surcharge that sits [...]",
  "key_points": [
    "Barclays and Lloyds shares rise on reports of lower expected bank tax",
    "Chancellor John Healey to lower banking surcharge from 8% to 3%",
    "Banking surcharge contributed £1.2bn to Treasury last year"
  ],
  "editors_take": "A more moderate tax approach eases the financial pressure on major lenders and avoids the hostile regulatory environment that threatened to deter significant international investment in the United Kingdom.",
  "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."
}