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

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.