Chancellor John Healey has dropped his strongest hint yet of higher taxes on banks, saying he had “decisions to take” in the Budget in relation to the financial services sector. “My observations on the banks are just that people too often see them as big distant financial institutions, when they are hard-wired into the economic fabric,” Healey said in Bangkok, during a trip for the annual meetings of the IMF and World Bank. He added: “That said, I’ve got decisions to take in the Budget, and I’ll set those out in two weeks’ time.”
The Treasury declined to comment on a report in The Guardian saying that Healey is poised to impose higher levies on the banks.
Edit: Anything but cut welfare, of course. Meanwhile, lenders will naturally look to pass on any increase in corporation tax to 8%, to borrowers etc.