Chancellor John Healey plans to raise bank taxation, which could ease strained
public finances but risk a policy rift with Bank of England Governor Andrew
Bailey. Healey may reverse the 2023 Conservative cut to the bank corporation tax
surcharge—reinstating the rate from 3% back to 8%—which, if fully restored, is
expected to generate about £3bn (~$4bn) of revenue. Reports surfaced late
Thursday and ran on UK front pages Friday; both Healey and Bailey were in
Bangkok for IMF/WBG meetings. Bailey told an IIF forum the measure is a Treasury
matter, but earlier this year he warned that punitive bank measures would
ultimately push up mortgage rates and could threaten financial stability.
