UK chancellor plans to increase taxes on banks in October budget

UK Chancellor John Healey has announced plans to raise taxes on banks in his budget on 28 October 2026. The change will probably mean increasing a special tax that banks pay on top of the standard business tax. This extra tax was cut from 8% to 3% under former Chancellor Rishi Sunak. Raising it back could bring in around £2 billion a year for the government. Healey says the money will help people with the cost of living and improve public finances. Banking leaders told the BBC they expected higher taxes were coming. Healey has called banks important to the UK economy, but he has not ruled out tax rises. Some analysts warn that banks could pass higher costs on to their customers.