UK bank shares came under pressure on Friday morning after the Guardian reported that Chancellor John Healey is planning to raise the bank profit surcharge from 3% to as high as 8% in his October 28 Budget.
Lloyds Banking Group and NatWest Group were both down 2.3% in early trade, with Barclays and HSBC also lower.
Bloomberg was running a similar story this morning. Asked directly whether he would tax the banks, Healey told reporters: “I’ve got decisions to take in the Budget, and I’ll set those out in two weeks’ time.”
Britain’s four largest banks have generated around £200 billion in pre-tax profits over the past five years, with first-half 2026 profits alone topping £29 billion.
Senior bank executives met Healey earlier this month and left, by most accounts, none the wiser about his intentions.
Today’s reports suggest they may not like what is coming.
The Budget is on October 28.
