IMF Tells Healey to Look at Pensions and Welfare, Not Banks
The International Monetary Fund has urged the chancellor to find savings rather than tax the banks at the Budget. “With taxes roughly at 40% of GDP – historically, for Britain, a high number – then of course balancing these measures on the fiscal side… makes good sense,” said Helge Berger, citing the triple lock and benefits. Lloyds and NatWest shares fell on expectations of a tax rise.
The Treasury is understood to be leaning towards the bank surcharge, cut from 8% to 3% in 2023; reversing it fully would raise about £2bn, though it may not go all the way back. UK Finance says doing so would leave GDP £1.2bn lower by 2029–30 and lending £10.4bn lower. The other side is equally specific: the TUC says the cut has cost £6bn in three years, and the big four made £29.2bn in the first half. Sir Philip Augar, the former banker, framed it on the Today programme: “Banks can’t be too big to fail and too big to tax.” If more revenue is needed, Mr Berger suggested property taxes or VAT. The Treasury says tax decisions are for fiscal events.