Conservatives warn Healey's bank tax plan could push mortgage rates higher ahead of budget
Conservatives say Labour's proposed tax on banks will raise mortgage rates as the budget approaches.
Conservatives have warned that Labour's intention to impose additional taxes on the banking sector will likely lead to higher mortgage rates just before the upcoming budget. Chancellor John Healey plans to raise billions in new levies on large banks, justifying the move by citing strong profits. Shadow Chancellor Andrew Griffith warned that lenders would pass the tax burden onto borrowers, inflating already steep mortgage costs.
Former cost-of-living tsar Richard Walker warned the government does not understand the difficulties businesses face, citing his visit to Shell UK's St Fergus Gas Terminal. Treasury entrepreneurship adviser Alex Depledge, who is set to quit, criticized the focus on legacy industries over future-oriented firms, underscoring internal dissent as the budget aims to support entrepreneurs.
Why it matters
Higher mortgage costs could affect many homeowners and slow economic growth.
How this story developed
- Oct 18 Rural councils urge Chancellor John Healey to address £19bn growth gap in upcoming Budget
- Oct 23 Antonia Medlicott’s budgeting and tax guidance has entered the discussion ahead of the Budget.
- Oct 25 Healey scheduled an early budget for 28 October that is expected to include a £70 billion borrowing increase and a mix of tax and spending measures.
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