Windfall tax

[Steveam]

From today’s (18/10/22) FT:

“Asked if banks might face higher taxes, the Treasury said: “We can’t comment on specific speculation, however the chancellor and prime minister have been clear that difficult decisions will be required to restore economic stability and no options are off the table.”

John Glen, former City minister, said an effective tax rate of 33 per cent, plus national insurance contributions, would leave Britain as an international “outlier in terms of the overall tax burden”.

David Postings, chief executive of UK Finance, a trade body, urged the government “to consider the [bank] surcharge very carefully and not put at risk the competitiveness of the UK’s banking and finance industry”.

Senior bankers confirmed they expected lenders to record big profits this year, driven by higher interest rates. One big lender said the Treasury had sought its views on the surcharge, but the signs were ominous.”

Best wishes,

Steve

[bruncher]

From today’s (18/10/22) FT:

“Asked if banks might face higher taxes, the Treasury said: “We can’t comment on specific speculation, however the chancellor and prime minister have been clear that difficult decisions will be required to restore economic stability and no options are off the table.”

John Glen, former City minister, said an effective tax rate of 33 per cent, plus national insurance contributions, would leave Britain as an international “outlier in terms of the overall tax burden”.

David Postings, chief executive of UK Finance, a trade body, urged the government “to consider the [bank] surcharge very carefully and not put at risk the competitiveness of the UK’s banking and finance industry”.

Senior bankers confirmed they expected lenders to record big profits this year, driven by higher interest rates. One big lender said the Treasury had sought its views on the surcharge, but the signs were ominous.”

Best wishes,

Steve

A later headline firms up the possibility

Jeremy Hunt lines up raid on bank profits to help fill £40bn UK fiscal hole

https://www.ft.com/content/147e9952-33d ... 065641860e