The Aporia
The Aporia
Cecil, N. (2026, October 15). Hit the City with Budget tax raid of at least £9 billion on banks, unions tell Chancellor John Healey. Evening Standard. https://www.standard.co.uk/news/london/tax-rise-banks-budget-chancellor-john-healey-city-london-b1301064.html
Cecil, Nicholas. “Hit the City with Budget tax raid of at least £9 billion on banks, unions tell Chancellor John Healey.” Evening Standard, 15 Oct. 2026, https://www.standard.co.uk/news/london/tax-rise-banks-budget-chancellor-john-healey-city-london-b1301064.html.
Cecil, Nicholas. “Hit the City with Budget tax raid of at least £9 billion on banks, unions tell Chancellor John Healey.” Evening Standard, October 15, 2026. https://www.standard.co.uk/news/london/tax-rise-banks-budget-chancellor-john-healey-city-london-b1301064.html.
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John Healey, Britain's Chancellor of the Exchequer, spoke at the International Monetary Fund meetings in Bangkok on October 15, describing banks as a "jewel in the crown" of the British economy. Despite this praise, he has not ruled out increasing taxes on the banking sector to help fund cuts to energy bills for low and middle-income households. The biggest four banks—HSBC, NatWest, Barclays, and Lloyds Banking Group—collectively earned around £15 billion in profit over the first six months of 2026, leading trade unions like the TUC and think tanks such as IPPR to call for additional taxes. However, UK Finance warns that increasing bank taxes could weaken competitiveness and discourage investment. Currently, major banks pay a surcharge of 3% on top of the baseline corporation tax rate of 25%, generating approximately £1.4 billion from the bank levy last year alone. Despite these concerns, Healey is considering reversing former Chancellor Jeremy Hunt’s reduction in the banking surcharge from 8% to 3% to raise more funds for the budget deficit. Bank shares have fallen due to speculation about potential tax hikes; Lloyds Banking Group and NatWest saw a drop of around 2% on October 16, following reports that Healey might target banks in his upcoming Budget statement scheduled for October 28.
