Senior Banking Executives Expect Higher Taxes in Upcoming UK Budget

Senior banking executives told the BBC they anticipate the banking sector will be targeted for higher taxes in the Budget announced in two weeks. While John Healey described banks as part of the UK economy's "crown jewels," he has not ruled out a tax raid. The biggest four banks collectively made around £15bn profit in the first six months of this year. Currently, major UK banks pay a 3% surcharge on top of a 25% corporation tax rate, plus a levy on balance sheet assets, contributing nearly £40bn to the Treasury last year. UK Finance warned that further tax increases would weaken competitiveness and discourage investment.