Healey set to raise UK bank taxes in first Budget

Chancellor John Healey is set to raise taxes on UK banks in his 28 October Budget, reportedly reversing a cut to the sector's surcharge.

• Healey's first Budget falls on 28 October, and reversing the bank surcharge cut from 3% to 8% would raise around £2bn annually.
• UK Finance warned that further bank tax rises would weaken competitiveness and discourage investment and job creation.
• UK bosses of HSBC, Lloyds, NatWest, Barclays and Santander met Healey last week but received no assurance that tax hikes were ruled out.