Britain is to double a tax surcharge on banks to 6%, finance minister John Healey said on Wednesday as part of his first budget announcement, resisting intense lobbying pressure from lenders in recent months which had argued any such increase could curb lending.
The tax hike comes via an increase in the surcharge banks pay on profits above a set threshold from 3% to 6%, partially reversing a cut from 8% three years ago under then-Prime Minister Rishi Sunak.
The hike will be temporary and last for 15 months, Healey said.
Big British lenders have reported bumper profits in recent years, fuelled by favourable interest rates.
UK Finance, the industry lobby group, has said Britain already taxes banks higher than in other major financial centres. It estimated in a report this month that the UK banking sector paid £25.7 billion in direct taxation in the year to end-March.
British trade unions had lobbied for an even bigger tax hike, citing fairness and banks' record profits.
https://uk.finance.yahoo.com/news/britains-finance-minister-hikes-bank-131056553.html
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