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Bank tax hike ‘unhelpful’ to economic growth aims, Lloyds finance chief says

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Wise, A. (2026, October 29). Bank tax hike ‘unhelpful’ to economic growth aims, Lloyds finance chief says. Evening Standard. https://www.standard.co.uk/business/business-news/lloyds-john-healey-government-budget-b1302755.html

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Evening Standard · collected 2026-10-29 · by Anna Wise

Quick Summary

Lloyds Bank's finance chief expressed concern about a new tax hike on banks, stating that additional taxes are "unhelpful" for economic growth and international competitiveness. The bank reported nearly doubling its profits to £2.3 billion in the third quarter of 2026 compared to the same period last year. The finance chief acknowledged the government's fiscal constraints but emphasized the importance of reducing lending costs to stimulate economic growth. The tax measure, expected to raise an additional £1.5 billion for the Treasury over 15 months, is intended to fund support for household energy bills.
Written by AI on 2026-10-31, from this article's own text only (the story summary below draws on all the coverage).

AI analysis

Story summary

Lloyds Banking Group's chief financial officer, William Chalmers, criticized Chancellor John Healey for linking a doubling of bank taxes to funding for household energy bill support. The new surcharge, which increases from 3% to 6%, is expected to raise an extra £1.5 billion for the Treasury over 15 months, according to the Office for Budget Responsibility. Chalmers acknowledged that while the government faces fiscal constraints, additional taxes are "unhelpful" and could hinder economic growth by increasing borrowing costs. He emphasized the need for a temporary measure, expressing hope it would not be extended beyond March 2028. The announcement came as Lloyds reported nearly double its profits in the third quarter of 2026.

Written for “Lloyds Criticizes Bank Tax Hike” on 2026-11-02, grounded in this article and the 1 other(s) covering the same event.

Story

📰 Lloyds Criticizes Bank Tax Hike
Economy/Business · 2 article(s) covering the same event. See how they differ ↓

Compared with similar articles

This article reads unscored and hedges 12% of its claims. Each row says how that neighbour differs.
Evening Standard
⚖️ Leans left Hedges 4 of 16 claims Outlet record 64/100
“The articles discuss different aspects of tax policies and their impacts on banks, with Article A focusing on Chancellor Healey's announcements about potential tax hikes, while Article B focuses on Lloyds' finance chief reacting to these potential tax hikes.”
Evening Standard
Hedges 3 of 20 claims Outlet record 64/100
“Article A reports on the announcement of bank tax increases and their effect on bank shares, while Article B discusses Lloyds' finance chief's reaction to the new taxes. They cover related topics but describe different specific events.”
The Guardian
Hedges 4 of 17 claims Outlet record 66/100
Daily Mail
⚖️ Leans left Hedges 2 of 27 claims Outlet record 69/100
“The articles discuss different aspects of the proposed bank tax hike; Article A focuses on unions' claims and expected policy changes by John Healey, while Article B reports Lloyds finance chief's reaction to the same proposal.”
Evening Standard
⚖️ Leans left Hedges 3 of 46 claims Outlet record 64/100
“Article A discusses the imposition of a new tax surcharge by John Healey on banks, while Article B focuses on Lloyds' finance chief's reaction to this tax hike and its impact on economic growth. Although related, they describe different specific events.”
Evening Standard
Hedges 3 of 15 claims Outlet record 64/100
“The articles discuss different dates and perspectives on bank profits and tax hikes, indicating they are not describing the exact same incident.”
Daily Mail
Hedges 5 of 23 claims Outlet record 69/100
“Article A discusses the announcement and market reaction to a new bank tax in John Healey's Budget, while Article B reports on Lloyds finance chief's comments about the impact of this tax on economic growth. They describe related but distinct events.”
Evening Standard
Hedges 4 of 25 claims Outlet record 64/100
“The articles discuss different aspects of bank taxes; Article A covers the announcement and its impact on shares, while Article B focuses on a reaction from Lloyds' finance chief regarding the tax hike.”
How this article was measured signals, leaning charts, publisher record, byline, topics and claims

Signals How these are calculated →

Claims extracted
17
sentences that state something as happening or true
Uncertain
12%
2 of 17 hedged ("reportedly", "may", "according to")
Leaning
withheld
no quote in the article backed the model's score
Publisher signals
64/100
Evening Standard's corrections and hedging, across everything collected from it. Not a measure of accuracy.
Outlets on this story
2
Economy/Business
Same framing elsewhere
1
articles that frame the event the way this one does
Analyzed 2026-10-31 · how these are computed

How this is being covered How these are calculated →

Article leaning vs. publisher reliability
Source leaning vs. consistency

Publisher

Evening Standard · 8215 article(s) · 73 correction(s) detected
Running correction rate · 73 correction(s)

Who wrote this

Anna Wise
72 article(s) here · 1 carrying a prediction
🔮 Bank of England expected to raise interest rates for first time since 2023 Borrowers could be facing a squeeze as the Bank of England is expected to hike interest rates for the first time in more than three years.
🔮 However, he said the measure was temporary and would be in place for 15 months, marking a less severe change than some in the industry had feared.
🔮 Bank taxes are set to rise by less than some in the industry had feared, as the Chancellor said he was asking “a bit more” from banks to help fund support on energy bills.
🔮 Bank taxes are set to rise by less than some in the industry had feared, as the Chancellor said he was asking “a bit more” from banks to help fund support on energy bills.
🔮 Bank taxes are set to rise by less than some in the industry had feared, as the Chancellor said he was asking “a bit more” from banks to help fund support on energy bills.
🔮 But this was set against bigger AI spending ambitions, he said, adding: “The four biggest hyperscalers are projected to spend over five trillion US dollars (£3.76 trillion) on AI-related capital expenditure between 2025 and 2030.
🔮 The costs were partly offset by TSB’s contribution to profits of £96 million from May to September, while customer deposits and the mortgage loan book also increased following the acquisition. Santander said it was still integrating the smaller rival after nearly 1,000 of its staff moved over at the beginning of the month. But it is also expecting to find cost “synergies” worth around £400 million by the end of 2028 from the merger. UK chief executive Mahesh Aditya also said the bank was targeting further cost efficiency savings this year “driven by simplification and automation”. “We also continued to deliver against our wider strategic priorities to deepen customer relationships and enhance operational efficiency, while leveraging Banco Santander’s global technology platforms and AI capabilities to provide the support our customers need,” he said.
🔮 Claude chatbot maker Anthropic has kicked off plans to launch its shares on the US’s stock market, proclaiming artificial intelligence could help cure diseases such as cancer and grow economies around the world.
🔮 Banks set to report stronger profits as they face prospect of tax hike Banks are widely speculated to be a target with Mr Healey thought to be considering increasing the surcharge on profits from 3% to 8% – reversing a tax cut for the sector introduced by former Conservative chancellor Jeremy Hunt.
🔮 Banks set to report stronger profits as they face prospect of tax hike Banks are widely speculated to be a target with Mr Healey thought to be considering increasing the surcharge on profits from 3% to 8% – reversing a tax cut for the sector introduced by former Conservative chancellor Jeremy Hunt.
Also by Anna Wise
Nothing else under this byline is closely related to this article, so these are simply their most recent.
All 72 articles by Anna Wise →

Topics

Bank of Scotland Government Lloyds Treasury the Office for Budget Responsibility

Subjects

Lloyds ORG · 3× Chalmers PERSON · 2× Bank of Scotland ORG · 1× Government ORG · 1× Healey PERSON · 1× Treasury ORG · 1× the Office for Budget Responsibility ORG · 1×

Narrative

Mr Chalmers said the bank “recognises the fiscal constraints” facing the Government, but said it is “ultimately important that we do what we can to reduce the cost of lending in order for the economy to grow, and of course that travels through to the cost of borrowing”.
framing: assertive · carried by 1 article(s) · first seen 2026-10-31
🔮 However, he said the measure was temporary and would be in place for 15 months, marking a less severe change than some in the industry had feared.
2026-10-31 · Evening Standard
Bank tax hike ‘unhelpful’ to economic growth aims, Lloyds finance chief says · assertive framing

Claims (17 extracted, 2 hedged)

The remarks came on the day Lloyds reported a near-doubling of its profits for its third quarter of 2026. asserted
Lloyds → come → 2026
Mr Chalmers said the bank “recognises the fiscal constraints” facing the Government, but said it is “ultimately important that we do what we can to reduce the cost of lending in order for the economy to grow, and of course that travels through to the cost of borrowing”. asserted
that → say → borrowing
He said: “Additional taxes are unhelpful to achieving both of those objectives: UK growth or international competitiveness. asserted
taxes → say → objectives
“We take it for what it is, but we do sincerely hope that it is indeed limited.” asserted
it → take → it
However, he said the measure was temporary and would be in place for 15 months, marking a less severe change than some in the industry had feared. asserted
some → say → industry
Mr Healey said he was asking “a bit more of our banks to support ordinary people”, with the extra money raised set to help fund support for household energy bills. asserted
money → say → bills
The measure is expected to raise an extra £1.5 billion for the Treasury over the 15 months it is in place, according to the Office for Budget Responsibility. uncertain
it → expect → Responsibility
Asked whether the link to energy bills support leaves the door open for an extension to the tax change, Mr Chalmers said he did not see an “obvious linkage between energy prices and bank taxes”. asserted
he → ask → prices
He added: “In fact, if anything, it makes it even more important that we’re able to lend into the real economy and secure growth, which is the best defence against energy price impact that might otherwise prevail in the UK economy.” uncertain
that → add → economy
The group’s financial results, which includes brands Lloyds and Bank of Scotland, unveiled a pre-tax profit of £2.3 billion for the third quarter. asserted
which → include → quarter
This was almost double the £1.2 billion it made the same period a year ago. asserted
it → make → ?
Last year’s profit figure was affected by the group setting aside an extra £800 million provision to cover costs related to the UK watchdog’s motor finance scheme, to compensate people mis-sold a car loan. asserted
group → affect → loan
The scheme is currently on hold while it faces legal challenges in court. asserted
it → face → court
Stripping out that impact, earnings still strengthened year-on-year, with Lloyds generating more income during the quarter. asserted
Lloyds → strip → quarter
Underlying net interest income, which shows the difference between what banks make from loans and what they pay out on deposits, jumped by 10% year-on-year. asserted
they → underlie → year
Across the year, the bank reported growth on its balance sheet with lending and customer deposits increasing. asserted
lending → report → sheet
It said it had helped more than 50,000 first-time buyers purchase a home this year with more than £1.25 billion of lending. asserted
buyers → say → lending
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