Banks expect to be hit in Budget tax raid
UK banking executives anticipate potential tax increases in the upcoming government Budget. The sector is bracing for possible adjustments to the bank surcharge or levy as the Treasury seeks to boost revenue.
Why it matters
Increased taxes on banks could impact lending capacity and UK economic competitiveness, making this a critical issue for financial markets and government growth strategy.
Image source, Sirachai Arunrugstichai/Bloomberg via Getty Images By Simon Jack Business editor Published 15 minutes ago 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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