Story perspectives

Healey Says Bank Surcharge Hike Could Hit October Budget

By Drooid · Oct 16, 2026, 10:59 PM UTC · How we work

Summary

Story summary

Finance Minister John Healey said a bank surcharge increase could appear in the 28 October budget.
Union leaders argue the surcharge hike is needed as banks post record profits while households face mortgage pressures.
The Trades Union Congress calculated Treasury revenue fell by £6 billion after the surcharge was cut to 3 % in 2023.
The Institute for Public Policy Research recommended raising the surcharge to 16 % to raise £24 billion in four years.

History

Historical Context

The UK introduced a bank levy in 2011, a post-2008 crisis measure that taxed banks 0.05-0.10% of liabilities and raised £2.5 billion in its first year. The levy helped lift the five biggest banks’ profits by about 12% and fed Project Merlin’s lending commitments. Now Finance Minister John Healey proposes a 16% surcharge to recover £24 billion, reviving the original revenue-raising intent of the 2011 tax.

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Story summary

Finance Minister John Healey said a bank surcharge increase could appear in the 28 October budget.
Union leaders argue the surcharge hike is needed as banks post record profits while households face mortgage pressures.
The Trades Union Congress calculated Treasury revenue fell by £6 billion after the surcharge was cut to 3 % in 2023.
The Institute for Public Policy Research recommended raising the surcharge to 16 % to raise £24 billion in four years.

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