Brief
Chancellor Healey mulls restoring bank profit surcharge to 8%
Healey is weighing a reversal of the profit surcharge cut, which could raise £2.25bn a year, amid warnings from business groups.
By Felo News Desk · Published
Chancellor John Healey is reportedly considering reinstating the banking profit surcharge at its former 8% rate, reversing the Conservative reduction to 3%, according to the Independent Bulletin.
Trades Union Congress general secretary Paul Nowak said the reversal could generate £2.25bn annually from banks' strong earnings. The Institute for Public Policy Research also backed a surcharge to rebuild fiscal buffers and aid households under pressure.
Business organisations and the Conservative opposition warned that a sector‑specific tax could harm UK competitiveness and curb investment. Healey has signalled a tough autumn budget on 28 October as borrowing costs rise and global pressures mount.
Key facts
- Healey is considering restoring the banking profit surcharge to 8% (independent.co.uk)
- The TUC says the move could raise £2.25bn a year (independent.co.uk)
- Business groups warn the tax could damage competitiveness (independent.co.uk)
Sources
- [1] independent.co.uk — originally reported as “Healey considers targeting banks with tax hikes in the Budget – what we know”
