Chancellor John Healey Raises Bank Tax to Fund Energy Bills

Chancellor John Healey announced a temporary increase in the corporation tax surcharge for banks during the autumn Budget statement. Starting in January, the surcharge will rise by 3% to a total of 6% for a period of 15 months. The measure is expected to raise £1.5 billion for the Treasury to fund support for household energy bills.

William Chalmers, Chief Financial Officer of Lloyds Banking Group, criticized the hike, arguing that additional taxes hinder UK economic growth and international competitiveness. He urged the government to ensure the measure remains limited in duration.

The announcement coincided with Lloyds Banking Group reporting a third-quarter pre-tax profit of £2.3 billion. This figure is nearly double the £1.2 billion earned in the same period last year, although the previous year's results were affected by an £800 million provision for a motor finance compensation scheme.