UK Finance Minister John Healey does not rule out a higher tax on banks’ profits in the budget on 28 October. Reuters reports. The banks’ surcharge is currently 3 percent, and analysts see a possible increase to 8 percent or by 2–3 percentage points.
The banking sector, for its part, warns of reduced investment and lending.
At the same time, Healey emphasises the importance of banks to the economy and stands by the government’s target of reducing the budget deficit, despite rising borrowing costs.
