UK Chancellor hikes taxes on banks to fund household energy subsidies

Chancellor John Healey has delivered his first Budget, announcing a tax on bank profits to fund a 100 pound winter payment for 20 million families across the UK. The Guardian and the BBC both reported that the chancellor blamed global economic storms for driving up energy prices and creating a cost of living crisis. The BBC added that the measures aim to give hard-pressed families immediate breathing space. [1][2][8][9][12]

The Guardian reported that the chancellor raised taxes on both banks and landlords as part of the new fiscal package. According to the BBC, Mr Healey also unveiled tax breaks intended to support high street businesses. However, the BBC noted that major financial decisions regarding welfare and defence spending have been postponed until next year. [1][2][8]

As FTMQ Business reported earlier, the International Monetary Fund had previously warned Chancellor Healey against raising taxes on Britain's banking sector, advising public spending cuts instead. Financial institutions had braced for the move, which was expected to draw from the approximately 15 billion pounds in profit generated by the top four UK banks during the first half of the year. [16][17]

In regional funding announcements, the BBC and the Liverpool Echo reported that Mr Healey pledged 20 million pounds in investment for the Liverpool Littlewoods film studios project. [10][11]