UK raises bank profit surcharge to 6%
British Chancellor John Healey announced on October 28 that the bank profit surcharge would increase from 3% to 6% for 15 months starting in January 2027.
The increase was smaller than the previously discussed 8% rate. Shares in Barclays, NatWest and Lloyds gained approximately 4% following confirmation of the measure.
The temporary surcharge will help finance household energy support. Although banks face higher taxation, the smaller-than-feared increase supported sector valuations. Its longer-term impact on lending and profitability remains uncertain.
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