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Healey Proposes 8% Bank Surcharge to Raise £2.25B

By Drooid · Oct 18, 2026, 2:01 PM UTC · How we work

Summary

Healey Proposes Surcharge

Chancellor Jeremy Healey proposes raising the bank surcharge to eight percent, generating £2.25 billion annually.
Healey faces a £35 billion shortfall warning with two weeks left before the Budget.
TUC general secretary Paul Nowak calls for a 16% surcharge, claiming it could raise £24 billion over four years.
Institute for Public Policy Research suggests a windfall tax on banks to raise £1 billion for a £16 billion aid package.

Summary

Medlicott Warns Duty

Financial adviser Antonia Medlicott warns fuel duty will rise by 2 p per litre in January and March.
She advises households to factor the duty increase into monthly budgets to avoid cash-flow strain.
Medlicott recommends moving share holdings into an ISA to shield future gains from possible Capital Gains Tax changes.
She notes the current Capital Gains Tax allowance is £3,000, with rates of 18% or 24% above it.

History

Historical Context

After the 2008 crisis, the Labour government introduced a temporary bonus tax in 2009 and began debating a bank levy. In 2011 Chancellor George Osborne launched the UK bank levy at 0.05-0.10% of liabilities, raising about £2 billion a year and underpinning Project Merlin’s £190 billion lending pledge. The levy’s revenue now informs current proposals to close a £35 billion fiscal gap.

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Healey Proposes Surcharge

Chancellor Jeremy Healey proposes raising the bank surcharge to eight percent, generating £2.25 billion annually.
Healey faces a £35 billion shortfall warning with two weeks left before the Budget.
TUC general secretary Paul Nowak calls for a 16% surcharge, claiming it could raise £24 billion over four years.
Institute for Public Policy Research suggests a windfall tax on banks to raise £1 billion for a £16 billion aid package.

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