Overview

• The Chancellor is reported to be actively considering higher taxes on banks ahead of the 26 November Autumn Budget, with no decision yet announced.
• Estimates cited in recent coverage put the fiscal shortfall at over £20 billion to roughly £30 billion going into the Budget.
• Options under review include lifting the bank corporation tax surcharge from its current 3% toward levels such as 5% or restoring 8%, which analysts say could raise about £2 billion a year.
• An alternative discussed by analysts and advocates is a windfall-style levy on banks’ interest- and QE-related profits, though economists warn such takings may be cyclical.
• Ministers are also pushing planning changes that they hope the OBR will credit with boosting growth, while UK Finance and major bank chiefs warn higher sector taxes would curb investment as unions and think tanks urge a tougher levy.