Ministers warn Healey against bank tax hike

Cabinet ministers are warning Chancellor John Healey against imposing higher taxes on banks, fearing a windfall raid would damage business and dampen economic growth as he seeks to fill a £4.7bn public finance gap. Healey has invited banking chiefs from Barclays, HSBC, Lloyds and NatWest to a summit on Tuesday, with Treasury sources saying he will be in "listening mode," though industry fears grow over a potential billion-pound tax raid. Ministers argue taxing banks would send the wrong message to investors, especially after recent tax increases on business rates and national insurance. UK Finance warns banks already pay nearly 47 per cent tax, one of the world's highest rates, and that further levies could drive investment and jobs abroad, with JP Morgan's Jamie Dimon cautioning staff could relocate. The top four UK banks posted an average 21 per cent profit increase in the first half of 2026.