John Healey poised to raise taxes on banks in budget

AI desk brief

UK Chancellor John Healey is poised to raise taxes on banks in the 28 October budget, with one option to reverse Jeremy Hunt’s cut to the bank surcharge and lift it back to 8%, potentially raising just over £2bn a year. The move comes as gilt yields have risen on worries that Middle East conflict could stoke inflation and as higher government borrowing costs threaten Labour’s deficit plans.

For metals, the key channel is the rates/real-yield backdrop rather than the bank tax itself: tighter fiscal optics and inflation concerns are supportive for gold if they keep UK and broader developed-market yields elevated but don’t fully offset safe-haven demand. The article also notes the UK’s four largest banks have generated £200bn in pre-tax profits over five years, underscoring why the government sees scope for a levy.