Chancellor Healey set to lift bank surcharge to 8% in upcoming budget
While attending the IMF meeting in Bangkok, Healey is expected to reverse Jeremy Hunt’s cut to the bank surcharge, moving it back to 8% and adding roughly £2 billion-£2.25 billion in revenue. The move follows pressure from think-tanks and the Trades Union Congress, even as major lenders warn it could dampen investment. He is also considering raising the profit threshold for the levy to protect smaller banks, while keeping other departmental spending within the limits set by his predecessor.
How this was covered
- Right-leaning coverage is the most divided on this story
Why it matters
Ordinary taxpayers could face new levies or reduced public services as the government seeks to close the gap.
How the sides frame it
LOW AGREEMENTLeft-leaning coverage frames the bank surcharge as a contested policy with calls for alternatives and warnings about growth, right-leaning coverage portrays the surcharge as economically harmful and urges avoiding it, while centrist coverage simply reports the expectation of a tax rise and assorted expert warnings.
LEFT
The surcharge is presented as a divisive proposal, with some voices urging against taxing banks and others pushing steep rates, while highlighting economic risks and alternative fiscal options.
CENTER
The story is reported as a factual preview of the upcoming budget, noting that banks expect a tax increase and citing expert warnings about fiscal pressures.
RIGHT
The surcharge is depicted as a dangerous move that would damage competitiveness and the economy, with calls to cut benefits instead and criticism of the chancellor’s approach.
The left emphasises
- IMF urges the finance minister to cut pensions, not tax banks.
- Union leader Paul Nowak pushes for a steep bank profit surcharge.
- IFS warns a £35 bn tax hike may be needed and doubts a bank levy will raise enough.
The right emphasises
- Industry bodies warn the surcharge would undermine UK competitiveness.
- IMF says Britain should cut the benefits bill rather than tax banks.
- Analysts claim the tax could cost the Treasury millions and hurt the economy.
How this story developed
- Oct 11 Inflation pressures could force UK chancellor to add up to £35bn to spending
- Oct 14 The IFS now highlights a £35bn fiscal gap requiring substantial tax measures.
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