UK's Healey says banks are key to economy but keeps tax options open
XLF•British finance minister John Healey said banks are central to the country's economic future but kept tax decisions open ahead of his October 28 budget. Analysts see possible increases to the current 3% bank surcharge, which raises just over £1 billion a year.
1. Tax decision remains open
Healey said banks were “hardwired into the economic fabric” of Britain, but said he still had decisions to make in the budget and that his comments were not a steer on tax changes. Analysts have discussed raising the current 3% surcharge on bank profits by 2–3 percentage points or restoring it to 8%.
2. Industry and fiscal concerns
UK Finance said higher bank taxes would weaken the UK's competitiveness, discourage investment and job creation, and work against the government's growth ambition. Healey said he intended to stay on course with deficit reduction and meet fiscal rules, while seeking to give some breathing space in the budget.
