Chancellor John Healey is reportedly set to raise the bank surcharge from 3% back to 8% in his 28 October budget, to offset the public finance damage from the Middle East war. The move could raise about £2.25bn a year according to TUC analysis, as rising borrowing costs erode the £24bn headroom Rachel Reeves had built. HSBC, NatWest, Barclays and Lloyds generated £200bn in pre-tax profits over five years, yet bank lobbyists warn higher taxes could push staff and business abroad, and JP Morgan's Jamie Dimon had threatened to scrap a £3bn London headquarters. The TUC wants a 16% rate, while Revolut and Shawbrook seek to lift the surcharge threshold from £100m to £500m. The IMF has urged Healey to stay the course on deficit reduction.
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Related tickers and likely impact
GBP/USD
• NeutralRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/14/2026 | 1.31962 |
| Change that session | -0.45% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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