Lloyds finance chief criticises planned bank tax rise

Summarised from 3 outlets · 4 reports · Updated 29 Oct, 09:32 · Archive

Lloyds Banking Group's finance chief has called a planned increase in bank taxes 'unhelpful' to economic growth.

William Chalmers, chief financial officer of Lloyds Banking Group, has criticised a planned increase in bank taxes announced in Wednesday's autumn Budget statement, calling it 'unhelpful' to achieving UK economic growth. He urged the Government to ensure the increase remains temporary as planned.

Chancellor John Healey said banks will have to pay an extra 3% on their corporation tax surcharge from January, bringing the rate to 6%. The measure is temporary and will be in place for 15 months. The Office for Budget Responsibility estimates it will raise an extra £1.5 billion for the Treasury over that period.

Mr Chalmers acknowledged the bank 'recognises the fiscal constraints' facing the Government, but said it is 'ultimately important that we do what we can to reduce the cost of lending in order for the economy to grow'. He added that 'additional taxes are unhelpful to achieving both of those objectives: UK growth or international competitiveness'. The Finance Ministry said the extra money raised would help fund support for household energy bills.

How it is being reported

• Lloyds boss warns Budget's bank tax increase ‘unhelpful’ to economic growthChancellor John Healey announced banks will have to pay an extra 3 per cent on their corporation tax surcharge from January, bringing the rate to 6 per centIndependent Business · 29 Oct, 10:39
• Lloyds executive criticises Healey for linking bank tax rises to energy bill supportBank’s chief financial officer hopes measure in budget is temporary as sector provides loans that could fuel growth A top Lloyds Banking Group executive has criticised the chancellor for linking bank tax increases to energy bill support for UK households, as he warned the government against extending the higher levy beyond March 2028. Lloyds’ chief financial officer, William Chalmers, acknowledged that the economic environment was “challenging but said this should not come at the expense of the banking sector, as it provides loans that could fuel UK growth. Continue reading...Guardian Business · 29 Oct, 10:31
• Bank tax hike ‘unhelpful’ to economic growth aims, Lloyds finance chief saysWilliam Chalmers said he ‘sincerely hopes’ the increase is temporary, as is planned.Independent Business · 29 Oct, 09:09
• Bank tax hike ‘unhelpful’ to economic growth aims, Lloyds finance chief saysWilliam Chalmers said he ‘sincerely hopes’ the increase is temporary, as is planned.Evening Standard · 29 Oct, 09:09

In this story: Lloyds Banking Group · William Chalmers · John Healey · UK

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