Brief
Healey weighs restoring bank profit surcharge to 8% amid tax debate
The chancellor is weighing a reversal of a three‑year‑old tax cut on banks, a proposal that could add roughly £2 billion annually to Treasury revenues.
By Felo News Desk · Published
Chancellor John Healey is reportedly considering restoring the banking profit surcharge to its pre‑cut level of 8%, a move that could generate about £2 billion a year for the Treasury, Standard reported.
What happened
The current surcharge, reduced from 8% to 3% three years ago by former Conservative chancellor Jeremy Hunt, is under review as Healey finalises his Autumn Budget for 28 October.
What the reports add
Standard notes that the proposal follows last‑minute calls to scrap a £2 billion tax hit on banks and cites former Bank of England chief economist Andy Haldane’s warning that higher levies could hurt growth.
What was said
Andy Haldane told Standard, “My hope is that this is a Budget for business and for bond markets… It is not my expectation… I expect a Budget for the backbenchers rather than for business or the bond markets.”
How it came about
Healey has described banks as part of the "crown jewels" of the economy, yet earlier Felo coverage highlighted pressure from city leaders and the TUC to keep taxes flat, setting the context for this possible reversal.
Key facts
- Healey is considering restoring the bank profit surcharge to 8% (standard.co.uk)
- The surcharge cut from 8% to 3% was made three years ago by Jeremy Hunt (standard.co.uk)
- Restoring the surcharge could raise about £2 billion a year for the Treasury (standard.co.uk)
- Andy Haldane warned higher levies could harm growth (standard.co.uk)
Sources
- [1] standard.co.uk — originally reported as “Budget 2026: How Chancellor Healey will hammer the City”
