Britain's finance minister hikes bank tax to 6%
XLF•Britain will raise the surcharge on banks’ profits above a set threshold from 3% to 6% for 15 months, finance minister John Healey said.
1. Temporary surcharge increase
The increase partially reverses a cut from 8% to 3% made three years ago. British lenders had argued that a tax increase could curb lending.
2. Banks’ shares rally
HSBC, Barclays, Lloyds Banking Group and NatWest have reported bumper profits in recent years, fuelled by favourable interest rates. Their shares rallied on Wednesday after the tax increase was smaller than feared.
