UK Chancellor John Healey's bank tax signals leave City firms uncertain

Key facts

• UK Chancellor John Healey has not clarified potential bank tax increases.
• Industry groups warn higher taxes could lead to businesses relocating.
• The current bank corporate tax surcharge is 3%, with a bank levy also in place.
• The TUC advocates for increasing the bank surcharge to at least 8%.

City bosses and industry groups have intensified calls to UK Chancellor John Healey not to raise bank taxes in his upcoming autumn Budget, warning that such a move could weaken investor confidence and drive business out of the UK. The current tax regime includes a 3% corporate tax surcharge on bank profits and a bank levy. Executives from major financial bodies, including UK Finance and the CBI, argued in a letter that the UK's financial services industry already faces a higher tax burden than international competitors. Healey met with bank executives earlier this week but did not provide clarity on potential tax changes ahead of the Budget on October 28. In contrast, the Trades Union Congress (TUC) is advocating for an increase in the bank surcharge to at least 8%, estimating it could raise £9 billion over four years.