Thursday 29 October 2026 3:32 pm

UK Finance chief: Labour must keep its promise that the bank tax is temporary

By: David Postings

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Taxes introduced in response to temporary pressures have a habit of outlasting them. The Chancellor must keep his promise that the bank tax rise is only temporary, writes David Postings 

After weeks of speculation in the run-up to the Budget, the Chancellor stood at the despatch box and praised the UK’s world-leading banks for the tax they pay and the jobs and investment they support. But he then doubled the bank corporation tax surcharge from three to six per cent. The Chancellor promised that the increase would last for only 15 months, and HM Treasury has stated that the time limit will be written into legislation.

He was right about the industry’s contribution. Banking is a vital part of the UK economy, and one I have been proud to be involved in for almost 50 years. Banks help people buy homes, support businesses........

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