John Healey poised to raise taxes on banks in budget
Source: The Guardian ·
Exclusive: Chancellor to target sector in his first budget to help offset damage caused by Iran war on public financesJohn Healey is poised to tax Britain’s banks in his 28 October budget, to help offset the damage inflicted on the public finances by war in the Middle East, the Guardian understands.The chancellor is in Bangkok, where the International Monetary Fund has praised the UK’s progress…
From the source
John Healey is poised to tax Britain’s banks in his 28 October budget to help offset the damage inflicted on the public finances by war in the Middle East, the Guardian understands. The chancellor is in Bangkok, where the International Monetary Fund has praised the UK’s progress towards balancing the books, urging him to “stay the course”. To keep the Treasury’s deficit reduction plans on track in the face of rising government borrowing costs, the Guardian understands Healey has decided to tap the financial sector for additional revenue. One option understood to be under discussion – reversing cuts to the bank surcharge made by Jeremy Hunt – would raise upwards of £2bn a year. Lenders have been logging strong earnings on the back of rising interest rates, with the UK’s four largest lenders – HSBC, NatWest, Barclays and Lloyds Banking Group – alone having generated £200bn in pre-tax profits over the past five years. Healey has repeatedly been urged by thinktanks and trades unions to…