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UK Chancellor Healey weighs bank tax hike, lender shares fall

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Neutral summary

Chancellor John Healey is preparing to raise taxes on banks as part of his first Budget, scheduled for October 28. According to reports, he is considering reversing the reduction in the bank profit surcharge introduced by former Chancellor Jeremy Hunt in 2023, increasing it from 3% to 8%. The measure is estimated to raise around £2.25 billion a year for the Treasury. Trades Union Congress general secretary Paul Nowak has backed the plans and urged the Chancellor to go further, up to 16%, which the union says could raise £24 billion over four years. Shares in major UK banks, including Lloyds (down 2.3%), fell on Friday following the reports. Healey himself, speaking at an International Monetary Fund event in Bangkok, called banks a “jewel in the British economic crown,” a remark some observers saw as sending mixed signals. Industry heavyweights warn that additional levies could threaten investment and economic growth, and result in more expensive mortgages for homeowners. Meanwhile, reports suggest Healey faces a shortfall of around £35 billion in the public purse. The IMF has cautioned the Chancellor to consider spending cuts rather than raising bank taxes. Some sources, including Guido Fawkes, argue the bank tax could actually cost the Treasury up to £700 million per year.

How it was framed

Outlets: 15. Countries: 4. Facts in the shared core: 3.

Publication timeline

  1. · Evening Standard (outlet profile)

    London business chiefs warn Chancellor John Healey not to hit City with £1 billion 'office tax' rise. Canary Wharf and the Square Mile could be hammered by higher levies on skyscrapers and expensive office blocks

  2. · Daily Mail (outlet profile)

    Healey hails banks as 'jewel in the crown of the British economy' amid fears over Budget tax raid. John Healey today declared that banks as a 'jewel in the crown of the British economy' in a sign he may not hit the indu…

  3. · City AM (outlet profile)

    Healey’s £1bn London office raid would be ‘attack on growth’. John Healey’s potential £1bn raid on London offices would be an “attack on growth” and deal a huge blow to the City, property firms have warned.  The Ch…

  4. · Financial Times (outlet profile)

    Healey signals tax raid on banks in UK Budget. Chancellor points to looming ‘decisions’ as financial services sector braces for higher levies

  5. · Evening Standard (outlet profile)

    Hit the City with Budget tax raid of at least £9 billion on banks, unions tell Chancellor John Healey. Banks in Square Mile are braced for higher levies in new Treasury tax grab

  6. · Belfast Telegraph (outlet profile)

    John Healey urged to hike taxes on banks’ ‘bumper profits’ in Budget

  7. · Evening Standard (outlet profile)

    John Healey urged to hike taxes on banks’ ‘bumper profits’ in Budget. The Chancellor is reportedly considering targeting banks to help offset the damage the Iran war has inflicted on the public finances.

  8. · The Independent (outlet profile)

    John Healey urged to hike taxes on banks’ ‘bumper profits’ in Budget. The Chancellor is reportedly considering targeting banks to help offset the damage the Iran war has inflicted on the public finances.

  9. · GB News (outlet profile)

    Labour set for bank tax raid as John Healey scrambles to raise funds ahead of Budget. Labour is planning a bank tax raid as John Healey scrambles to raise funds ahead of his first Budget. The Chancellor is considering a…

  10. · City AM (outlet profile)

    John Healey ‘poised’ to target banks with Budget tax raid. John Healey is set to raise taxes on banks when he delivers his first Budget at the end of the month, according to new reports. The Chancellor has faced fierce…

  11. · Bloomberg (outlet profile)

    UK's Healey Plans to Raise Bank Taxes. Bloomberg Daybreak Europe is your essential morning viewing to stay ahead. Live from Brussels, we set the agenda for your day, catching you up with overnight markets news from the…

  12. · Sky News (outlet profile)

    Bank shares fall as tax on lenders expected in budget. Major UK banks have seen their share prices fall after reports the chancellor is set to raise tax on lenders in the budget.

  13. · The Mirror (outlet profile)

    Chancellor John Healey 'planning to hike taxes on bank profits in Budget'. Chancellor is eyeing up measures to repair Britain's struggling finances ahead of his first Budget on October 28

  14. · ТАСС (outlet profile)

    Акции британских банков резко упали после сообщений о планах повысить налоги. Так, стоимость ценных бумаг банковской группы Lloyds упала на 2,3%

  15. · Tanjug (outlet profile)

    Britanski ministar finansija Džon Hili razmatra povećanje poreza na dobit banaka

  16. · Politika (outlet profile)

    Британски министар финансија Џон Хили разматра повећање пореза на добит банака. Британске банке упозоравају да би додатни намети могли да угрозе инвестиције и привредни раст

  17. · Belfast Telegraph (outlet profile)

    Bank shares drop on reports Chancellor planning Budget tax raid

  18. · Evening Standard (outlet profile)

    Bank shares drop on reports Chancellor planning Budget tax raid. Speculation is growing that John Healey is poised to hike the surcharge banks pay on their profits in his October 28 Budget.

  19. · The Independent (outlet profile)

    Bank shares drop on reports Chancellor planning Budget tax raid. Speculation is growing that John Healey is poised to hike the surcharge banks pay on their profits in his October 28 Budget.

  20. · City AM (outlet profile)

    Healey’s ‘mixed messages’ on bank tax leave City blindsided. The City was left reeling on Friday following reports that John Healey was drawing up plans to tax banks in the forthcoming Budget.  Industry heavyweight…

  21. · CNBC (outlet profile)

    Banking tax raid fears hit London lenders' shares ahead of crucial budget. Shares in some U.K. banks fell Friday after reports that the government is considering a higher surcharge on bank profits in the Oct. 28 Budget.

  22. · Guido Fawkes (outlet profile)

    Healey’s Bank Tax Could Lose Treasury £700 Million Per Year. John Healey is lining up a raid on Britain’s banks. As expected… Wide Treasury briefings say he will reverse the 2023 surcharge cut to take it from 3% b…

  23. · Daily Mail (outlet profile)

    Why a bank tax could be bad for you: Banks make huge profits but John Healey's plan could backfire. The Chancellor is set to hike taxes on banks at this month's Budget, but some warn the move could hit the economy and r…

  24. · GB News (outlet profile)

    Labour set for bank tax raid as John Healey scrambles to raise funds ahead of Budget. John Healey has set his sights on British banks in a bid to plug a "£35billion black hole" in the upcoming Budget. The Chancellor is…

  25. · Belfast Telegraph (outlet profile)

    IMF warns John Healey to consider spending cuts rather than raising bank taxes

  26. · Evening Standard (outlet profile)

    IMF warns John Healey to consider spending cuts rather than raising bank taxes. The Chancellor is reportedly considering reversing a reduction in the surcharge banks pay on their profits.

Factual core

  • The bank tax increase is described as a 'raid' on Britain's banks.
  • British Finance Minister John Healey is considering raising the tax on bank profits.
  • Chancellor John Healey is reportedly considering reversing a reduction in the surcharge banks pay on their profits.

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