Story perspectives

Healey to Consider Higher Bank Taxes in 2026 Budget

By Drooid · Oct 19, 2026, 10:05 AM UTC · How we work

Summary

Story summary

Chancellor John Healey said he will consider raising taxes on the banking sector in the budget due 28 October 2026.
Unions and progressive think tanks argue higher bank taxes are needed to fund struggling households.
IMF deputy director Helge Berger said the UK’s tax-to-GDP ratio is high and urged spending cuts over bank taxes.
The four largest UK banks posted £29.2 billion profit in H1, with £13.7 billion paid as dividends and buybacks.

History

Historical Context

After the 2008 financial crisis prompted a UK rescue package and a temporary 2009 bonus tax, the government introduced a bank levy in 2011 that taxed liabilities at 0.05-0.10% and generated about £2.5 billion annually. Chancellor John Healey’s current plan to raise taxes on Barclays and HSBC echoes that levy, aiming to fund further banking-sector reforms.

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Story summary

Chancellor John Healey said he will consider raising taxes on the banking sector in the budget due 28 October 2026.
Unions and progressive think tanks argue higher bank taxes are needed to fund struggling households.
IMF deputy director Helge Berger said the UK’s tax-to-GDP ratio is high and urged spending cuts over bank taxes.
The four largest UK banks posted £29.2 billion profit in H1, with £13.7 billion paid as dividends and buybacks.

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