Chancellor John Healey is reportedly planning a tax raid on bank profits in his first Budget, set to be announced in two weeks.
Ahead of the hotly anticipated Budget, The Guardian reports a tax raid on banks is part of the Chancellor's plan to mitigate the impact of the Middle East conflict on public finances.
senior banking executives have told the BBC they expect the sector to be "on the menu" for tax rises as the "Big Four" amassed combined profits of around £15billion in the first six months of the year.
While that has led to trade unions and other bodies calling for additional taxes, banking sector trade body UK Finance has warned such a move would "weaken competitiveness, discourage investment and job creation, and work against the government's ambition to deliver growth in every postcode".
Among the options open to Healey, The Times reports, is a plan to reverse a cut in the bank profits surcharge, which would raise around £2billion. The surcharge, paid on top of corporation tax, was introduced in 2016 at 8% before being slashed to 3% in 2023.
Another option is a one-off windfall tax, although some have warned international banks with operations in the UK may move their investment overseas if tax rates increase.
FSTE100
The UK's flagship share index, the FTSE 100, was at 10,811 shortly after opening this morning.
Brent crude oil futures were down 0.62%, sitting at $105.26 a barrel this morning.
Companies reporting
- Man Group - Q3 Trading Statement