The International Monetary Fund urged the UK to cut public spending rather than raise bank taxes ahead of Chancellor John Healey's 28 October Budget. Its deputy director Helge Berger said taxes at roughly 40% of GDP are historically high for Britain, and suggested modernising property tax and broadening VAT as revenue options, while putting the emphasis on spending measures such as removing the triple lock and better targeting social benefits. Healey is reportedly considering reversing a cut in the bank surcharge from 8% to 3%, a move that unions and think tanks say could raise more than £2 billion a year. The TUC called for a 16% surcharge that could raise £24 billion over four years, while UK Finance and the CBI warned that higher bank taxes would weaken competitiveness and discourage investment. The Institute for Public Policy Research has proposed a temporary windfall surcharge within a £16 billion package to help struggling households.
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