Chancellor John Healey plans higher UK bank taxes in budget
Big news for UK banks: Chancellor John Healey is planning to bump up their taxes in the October 28 budget.
The goal? Raise about £2.25 billion a year by bringing back higher surcharges, mainly targeting big banks that have done well from recent interest rate hikes.
The IMF praised the U.K.'s progress toward balancing the books and urged Healey to "stay the course," as the UK tries to keep its finances steady during global uncertainty.
Banks warn, Chancellor Healey defends taxes
Banks aren't thrilled: leaders warn that higher taxes could scare off investors or even push some business out of the country.
Still, Healey says it's about balancing economic growth with fiscal responsibility, especially with inflation rising and the Middle East conflict putting extra pressure on budgets.
Some groups, like the Trades Union Congress, are even calling for an even bigger tax hike on banks to boost public funds further.