UK's Healey stresses banks' broader contribution when asked about bank tax
XLF•Finance minister John Healey said banks are central to the UK's economic future when asked about a possible windfall tax on their profits. He said he would make budget decisions on October 28 but did not indicate whether he plans tax changes.
1. Bank tax question
Healey said banks were “hardwired into the economic fabric” of the UK and its future prospects. He was speaking to reporters in Bangkok, where he is attending the International Monetary Fund's annual meeting.
2. Budget decisions pending
Healey is due to present his first budget on October 28. Raising the bank levy on top of standard corporation tax could raise billions of pounds as lenders have profited from rising interest rates. Banks argue they are already highly taxed compared with some other major economies, while some analysts fear higher taxes could lead to increased charges.
