Healey reportedly plans higher bank taxes in October budget
Bank shares slipped in London after reports that Chancellor John Healey will raise levies on lenders in his Oct. 28 budget. The International Monetary Fund has urged him to target pensions or welfare instead.
By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .
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What happened
Reports said Chancellor John Healey plans to raise taxes on banks in the Oct. 28 budget, and British bank shares fell on the news, with Lloyds and NatWest among the decliners. The International Monetary Fund told Healey to target pensions or welfare rather than banks, while supporters of the plan argue banks were bailed out by taxpayers and can afford to pay more.
Why it matters
The move would raise levies on the financial services sector ahead of the budget. Supporters say banks can afford to pay more after taxpayer bailouts during the financial crisis.
Timeline
- Oct 15, 1:53 PM ET: Chancellor John Healey pointed to looming decisions on bank taxes, prompting financial services firms to brace for higher levies.
- Oct 16, 5:09 AM ET: Shares in British lenders fell on Friday after reports that Healey plans to raise bank taxes in his Oct. 28 budget.
- Oct 16, 11:33 AM ET: The International Monetary Fund told Healey to target pensions or welfare, not banks.
- Oct 16, 12:52 PM ET: A Guardian editorial argued that banks too big to fail cannot be too big to tax.
Coverage
- The Guardian view on the banks: too big to fail cannot mean too big to tax (The Guardian)
- Target pensions or welfare, not banks, IMF tells John Healey (The Guardian)
- Banking tax raid fears hit London lenders' shares ahead of crucial budget (CNBC)
- UK bank shares fall on report of potential tax hike in Oct. 28 budget (Yahoo News)
- John Healey set to raise bank taxes in the budget (The Guardian)
- Healey signals bank tax raid in UK Budget (Financial Times)
- Banks expect tax increase in Healey's first Budget (BBC)
- UK's Healey says banks are key to economy but keeps tax options open (centraloregondaily.com)
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