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Healey’s First Budget Adds 3% Bank Surcharge, £20B AI Boost

By Drooid · Oct 28, 2026, 06:10 UTC · How we work

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Summary

Chancellor John Healey will present his first budget to the House of Commons on 28 October 2026.
The budget adds a 3% surcharge on banks above the standard 25% corporate tax rate.
It freezes fuel duty at its current level.
It raises the national living wage to about £13.20 per hour.
It allocates more than £20 billion for state finance institutions to back AI, defence and green-energy projects.

History

In 2011, Chancellor George Osborne introduced the UK bank levy, a 0.5% charge on banks’ balance-sheet liabilities, raising £10 billion. HM Treasury reported that the levy generated £9.8 billion in its first year, prompting Royal Bank of Scotland and Barclays to adjust capital structures. Healey’s 2026 budget mirrors that precedent by adding a 3% surcharge on banks above the 25% corporate tax rate while funding AI and green projects. The earlier levy demonstrated that targeted financial taxes can raise substantial revenue and shape sector behavior, suggesting Healey’s measures may similarly steer banking and investment priorities.

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Historical Context

In 2011, Chancellor George Osborne introduced the UK bank levy, a 0.5% charge on banks’ balance-sheet liabilities, raising £10 billion. HM Treasury reported that the levy generated £9.8 billion in its first year, prompting Royal Bank of Scotland and Barclays to adjust capital structures. Healey’s 2026 budget mirrors that precedent by adding a 3% surcharge on banks above the 25% corporate tax rate while funding AI and green projects. The earlier levy demonstrated that targeted financial taxes can raise substantial revenue and shape sector behavior, suggesting Healey’s measures may similarly steer banking and investment priorities.

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