Britain's finance minister hikes bank tax to 6%, less than lenders feared
EWU•Britain will double the surcharge on bank profits above a set threshold from 3% to 6%. Finance Minister John Healey said the increase will last 15 months; Barclays, Lloyds and NatWest shares rose around 4%.
1. Temporary tax increase
Britain will raise the surcharge on bank profits above a set threshold from 3% to 6%, partially reversing a cut from 8% three years ago. Finance Minister John Healey said the increase will last 15 months.
2. Banks and industry response
Barclays, Lloyds Banking Group and NatWest shares rose around 4%. UK Finance estimated that the banking sector paid £25.7 billion in direct taxes in the year to the end of March. The industry group has said Britain already taxes banks more heavily than other major financial centres, while trade unions had called for a larger increase.
