Senior banking executives have told the BBC that they expect to face higher taxes in Chancellor John Healey’s upcoming Budget. While Healey has described banks as part of the UK economy’s “crown jewels,” leaders in the sector anticipate being targeted following strong financial results.
The UK’s four largest banks collectively reported approximately £15bn in profits during the first six months of the year, driven largely by higher interest rates. Trade unions have called for additional taxation, with Trades Union Congress general secretary Paul Nowak stating that banks are benefiting from bumper profits while households face mortgage pressures.
Several options are reportedly available to the chancellor to increase revenue from the sector:
- Reversing the reduction in the surcharge that banks pay on corporation tax, which was cut from 8% to 3% in 2023.
- Raising the bank levy charged on loans.
- Placing a temporary moratorium on allowing banks to use past financial crisis losses to offset current profits.
The banking sector’s trade body, UK Finance, warned that further tax increases would weaken competitiveness, discourage investment, and hinder job creation. Shares in Lloyds and NatWest fell following reports of potential tax hikes. Meanwhile, Treasury officials stated that decisions on tax are matters for the chancellor to announce during fiscal events.
Source: BBC News
Source: Banks expect to be hit with higher taxes in Budget (source-feed timestamp 2026-10-16T08:54:43+00:00). AI-assisted report based on the cited linked article and its RSS feed; details were not independently verified.
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