The article argues that the government is almost certain to impose a windfall tax on banks in the upcoming Budget, even though Chancellor John Healey has kept details tight. Options under consideration include reversing Jeremy Hunt's cut to the bank surcharge and changing how the Treasury treats the Bank of England's interest payments on commercial bank reserves. The sector's lobbying has fallen short, and Lloyds and Natwest shares were down 2.1% and 2.0% respectively this morning, while HSBC and Standard Chartered were up. The piece warns that UK lenders already face the highest tax of any major European finance hub, which could deter investment and restrict lending to SMEs.
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