HUNT URGES HEALEY NOT TO RAISE BANK TAXES IN BUDGET

Jeremy Hunt, who served as Chancellor under Liz Truss and Rishi Sunak, has urged Chancellor John Healey not to raise taxes on banks in the Budget on 28 October. Writing in The Times, he said increasing the bank surcharge would most likely reduce investment, growth and jobs rather than raise more revenue. Hunt warned that a mistake "could easily unravel" and cost the Treasury money rather than raise it. He said the chief executives of HSBC, Citi, NatWest, JPMorgan and Santander had raised concerns about new bank taxes.

As Chancellor, Hunt cut the bank surcharge from 8 per cent to 3 per cent in 2023 to offset a corporation tax rise; it applies to banking profits above £100m. The TUC has proposed raising it to 35 per cent, saying this could raise up to £60bn over four years, while campaign group Positive Money has called for a windfall tax on NatWest, Lloyds, Barclays and HSBC that it estimates could raise £19bn. Housing Secretary Angela Rayner urged former chancellor Rachel Reeves to raise the surcharge to 5 per cent. Hunt said the public finances remain tight, citing defence and social care.

Hunt cited PwC figures showing total taxes on banks in London amount to 46 per cent of profits. He said this compares with lower rates in Amsterdam, Frankfurt, Dublin and New York, and that the sector pays for about half the cost of running the NHS. His article follows an August call in which JPMorgan's Jamie Dimon stressed the importance of "getting public policy right", and concerns raised by Citigroup's Jane Fraser about a further UK bank tax. Healey is due to deliver his first Budget on 28 October.