Key facts
- City leaders are warning Chancellor John Healey that a proposed bank tax increase could lead to businesses leaving the UK.
- The proposed tax hike is seen by some as prioritizing short-term gains over long-term economic stability.
- The City of London values predictability in political leadership, a trait associated with former Prime Minister Gordon Brown.
- Former Chancellor Rachel Reeves was distrusted by business for a national insurance rise.
City of London leaders are voicing strong opposition to Chancellor John Healey's potential plan to increase a bank tax, warning that such a move could prompt businesses and skilled professionals to relocate out of the UK. The concerns, reported on October 6, 2026, suggest that Healey's approach is perceived as focusing on short-term financial gains rather than fostering long-term economic stability and growth.
Insiders in the City have expressed a preference for political predictability, a characteristic they associate with former Prime Minister Gordon Brown's tenure. In contrast, former Chancellor Rachel Reeves faced criticism and distrust from the business community following a surprise increase in employers' national insurance contributions. Healey recently delivered his first address at HM Treasury.