City of London Business Leaders Mobilize Against Potential Treasury Bank Tax Hike
Major UK business groups are pushing back against a potential Treasury tax raid on banks ahead of Chancellor John Healey's upcoming budget announcement.
POLICY WIRE — London, United Kingdom — Prominent British business organizations are ramping up their resistance to a rumored Treasury tax increase targeting the banking sector. This push comes just days before industry leaders are scheduled to hold their first face-to-face meeting with the Chancellor.
While the United Kingdom’s financial hub has expressed optimism regarding recent Treasury appointments, concerns remain that a contentious battle over bank taxation is looming. The City is bracing for a confrontation as Chancellor John Healey prepares to deliver a budget he has already characterized as challenging.
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Industry executives are particularly wary of a potential tax grab, noting that even the mere speculation of such measures can be detrimental. While previous Treasury proposals to target bank profits were blocked ahead of the 2025 Budget, there is a growing sense that the current administration may approach the issue differently.
In a move to influence the upcoming fiscal policy, lenders including Revolut, Monzo, and Shawbrook have issued a formal request to the Chancellor. The group is calling on John Healey to raise the profit threshold for the corporation tax surcharge to £500m.
Reporting by Policy-Wire (PW)
