City gears up for a fight on bank tax under Burnham
The U.K. financial sector is concerned that the new government under Prime Minister Andy Burnham may impose a windfall tax on banks to address fiscal deficits. Industry executives fear that the Treasury, led by John Healey, might target bank profits to balance the national budget.
Why it matters
This potential tax policy represents a significant point of tension between the new administration and the City of London, a critical pillar of the British economy.
The U.K.’s financial powerhouse is breathing a sigh of relief on key Treasury appointments — but fears a re-run of a fight about bank tax.
Copy Link Copied Share via email Share on X Share on WhatsApp Share on LinkedIn Free article usually reserved for subscribers Andy Burnham delivers his inaugural speech as the U.K.'s new prime minister, in London on July 20, 2026. | Dan Kitwood/Getty Images July 27, 2026 4:00 am CET By Hannah Brenton LONDON — Britain's bankers fear Andy Burnham could be about to hit them with a massive tax bill.
The new U.K. prime minister has taken office with gaps of billions of pounds in depleted government coffers, huge ambitions to revitalize Britain’s industry, and little space to borrow more on the financial markets.
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