UK to double extra tax on bank profits to 6%
The UK's Labour government plans to raise the surcharge on bank profits from 3% to 6%. The extra revenue is meant to offset consumers' sharply higher energy costs.
The Labour government of the United Kingdom intends to raise the additional tax on bank profits and use the proceeds to help cover households' sharply increased spending on energy. This follows from the draft budget the government has submitted to the British parliament.
Under the draft, the rate of the surcharge on bank profits in the country will go up from 3% to 6%. The change is expected to bring the budget an additional £1.5 billion.
Timing
The higher rate will apply from 2027 and remain in force for 15 months.
Reaction from banks and markets
Banks had feared a considerably larger increase. As a result, share prices of most major British banks rose after the news emerged.
Other levies
The UK also already has an emergency tax on the windfall profits of oil companies.
