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Budget Adds Bank Levy to Fund Household Energy Aid

By Drooid · Oct 27, 2026, 2:37 PM UTC · How we work

Summary

Healey Unveils Budget

Finance Minister John Healey will unveil a budget Wednesday adding a bank levy to fund household energy aid.
The budget provides £20.4 billion over five years for the state business lender and infrastructure bank.
Minimum wage for workers 21+ rises to about £13.20 an hour, a 3.9% increase.
Fuel duty remains frozen, continuing the policy unchanged since 2011.

Summary

ETFs Attract Record Inflows

HSBC, NatWest, Lloyds and Barclays shares fell 6-11% in October over budget tax worries.
UK large-cap ETFs attracted $3.4 billion net inflows in 2026, the strongest since 2020.
Homebuilders Barratt Redrow rose 16% and Persimmon and Taylor Wimpey posted double-digit gains.
Energy stocks lifted the FTSE 100 as Brent crude traded above $100 a barrel.

History

Historical Context

After the 2008 crisis, the IMF’s 2010 financial-stability contribution proposal spurred many OECD states to tax banks. The United Kingdom enacted a bank levy in 2011, charging 0.05-0.10% of liabilities, similar to levies adopted in Austria and France. Finance Minister John Healey’s 2024 proposal revives that model to fund a £20.4 billion energy-aid package.

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Healey Unveils Budget

Finance Minister John Healey will unveil a budget Wednesday adding a bank levy to fund household energy aid.
The budget provides £20.4 billion over five years for the state business lender and infrastructure bank.
Minimum wage for workers 21+ rises to about £13.20 an hour, a 3.9% increase.
Fuel duty remains frozen, continuing the policy unchanged since 2011.

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