Brief

CBI chief warns that raising bank tax would be an “own goal” ahead of Healey’s budget

Rain Newton‑Smith will urge Chancellor John Healey to give the financial sector breathing space at a CBI reception in London.

By Felo News Desk · Published Wed, 21 Oct 2026 02:16:10 GMT

Rain Newton‑Smith, chief executive of the Confederation of British Industry (CBI), is set to tell Chancellor John Healey at a London reception that raising the bank profit surcharge would be an “own goal” for the UK’s competitiveness.

What happened

Newton‑Smith will speak at the CBI’s autumn reception at the British Museum on Wednesday, the day before Chancellor John Healey delivers his first budget. She is expected to argue that the financial sector supports more than 650,000 jobs outside London and contributes over £200 billion to the economy each year.

What the reports add

The Independent notes that the Chancellor is reportedly considering increasing the surcharge on bank profits from the current 3 % to 8 %, a reversal of a cut introduced by former chancellor Jeremy Hunt. The Standard reports the same possible increase and adds that the move would be part of broader speculation about tax hikes in the upcoming budget.

What was said

Newton‑Smith is quoted by both outlets as saying, “Our financial services may be centred in London but they support more than 650,000 jobs outside the capital,” and “Adding to that would be an own goal for our competitiveness.” She also said, “The Budget next week must be about giving business breathing space and backing wealth creation.”

How it came about

Earlier coverage by Felo News reported that Healey was weighing a restoration of the bank profit surcharge to 8 % (healey-bank-tax-surcharge) and that city leaders had urged him not to raise the levy (city-leaders-urge-healey-scrap-bank-tax-hike). A poll the day before showed two‑thirds of Britons expecting tax hikes in Labour’s first budget (britons-expect-tax-hikes-labour-budget).

Key facts

CBI chief Rain Newton‑Smith will address Chancellor John Healey at a London reception on Wednesday. (independent.co.uk)
Newton‑Smith says the financial sector supports over 650,000 jobs outside London and adds more than £200 billion to the economy each year. (independent.co.uk)
Healey is reportedly considering raising the bank profit surcharge from 3 % to 8 %. (independent.co.uk)
Both Independent and Standard report the same possible surcharge increase and quote Newton‑Smith’s remarks. (standard.co.uk)

Timeline

2026-10-09 — City leaders and CBI sign letter urging Healey not to raise bank taxes.
2026-10-16 — Healey mulls restoring bank profit surcharge to 8 %.
2026-10-19 — Poll shows two‑thirds of Britons expect tax hikes in Labour’s first budget.