The Chancellor, John Healey, will raise the bank surcharge at the Budget but not back to the 8% it stood at until 2023, and the increase will be temporary, Bloomberg reports. The report was relayed by Alliance News. The Treasury has not confirmed it.
Earlier reports said the surcharge would go up. Bloomberg's sources now add a ceiling below 8% and say the rise will not be permanent.
The surcharge is currently 3% on top of the 25% corporation tax rate. Alliance News reports it raised £1.2bn for the Treasury in fiscal 2025-26, and that each extra percentage point is estimated to raise a further £400m a year.
UK-listed bank shares rose on the report. Alliance News says Lloyds Banking Group gained 1.8% to 104.00p, Barclays 2.1% to 431.00p and NatWest Group 2.2% to 648.60p.
The Budget statement is expected to settle the size and length of any increase. Until then, the report has not been independently checked.