UK Banks Warn of Potential Budget Tax on Profits

Banking executives have told the BBC they expect additional taxes on profits as part of the upcoming Budget. The sector contributed £40bn to the Treasury last year. Proposals include raising the 3% surcharge on corporation tax or introducing a moratorium on using past losses to offset profits. Banks argue higher taxes could reduce competitiveness and lending. The government has described banks as part of "the crown jewels" but faces pressure to raise revenue.

Will the Budget tax raid on banks raise costs for UK customers? Not necessarily; any changes would depend on final legislation and could affect lending rates.