Banks expect tax increase in Healey's first Budget
UK banking executives expect the sector to face tax increases in the upcoming Budget as the government seeks to address fiscal challenges. While banks argue that higher taxes could hinder growth and competitiveness, the government has not ruled out a levy on the sector's significant profits.
Why it matters
Potential tax hikes on the banking sector could impact UK economic growth, investment levels, and the competitiveness of London as a financial hub.
Image source, Sirachai Arunrugstichai/Bloomberg via Getty Images By Simon Jack Business editor Published 15 October 2026 Senior banking executives have told the BBC they expect the sector to be "on the menu" when the chancellor announces his Budget in two weeks' time.
John Healey has described the banks as part of "the crown jewels" of the UK economy, yet has refused to rule out a raid on the sector.
The biggest four banks collectively made around £15bn profit in the first six months of this year, leading to calls from trade unions and others for additional taxes.
However, the banking sector trade body, UK Finance, warned that "further increases in bank taxes would weaken competitiveness, discourage investment and job creation, and work against the government's ambition to deliver growth in every postcode".
What is the Budget and what could be in it?
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