FCA urged to probe bank tax leak before Budget speech

Summarised from 2 outlets · Updated 29 Oct, 13:20 · Archive

Regulators were asked to investigate whether leaked details of a bank tax increase moved share prices ahead of the Chancellor's Budget speech.

The Treasury Select Committee chairman Meg Hillier has written to the Financial Conduct Authority and the Treasury asking them to investigate whether leaked details of the bank tax caused improper share price movements. A Bloomberg report published at 10.45am on Budget day stated that the bank corporation tax surcharge would not reach 8 per cent as lenders had feared, and that the increase would be temporary. The article quoted 'people familiar with the matter'.

Bank shares rose sharply following the report. Standard Chartered increased by 5 per cent, while Lloyds and NatWest each rose by more than 4 per cent. Chancellor John Healey then announced in Parliament around two hours later, at 12.30pm, that he was raising the Bank Corporation Tax Surcharge from 3 per cent to 6 per cent for 15 months from January 2027.

Hillier raised concerns about market abuse in the Budget debate, saying: 'It seems that some bank shares increased in value and I am concerned to see if there is any evidence of leaked market-sensitive information that may have led to that movement because that would be a very serious issue.' In her letter to FCA chief executive Nikhil Rathi, she noted that the Bloomberg report 'appears to have been more than idle speculation' and had 'implications for relevant securities'.

How it is being reported

• John Healey faces questions over budget leak that moved bank share pricesTreasury select committee asks FCA to investigate whether tax surcharge leak led to ‘improper release of inside information’ John Healey is facing pressure to clarify whether he permitted a market-sensitive budget leak ahead of his statement, which moved bank share prices. The chair of the influential Commons Treasury select committe, Meg Hillier, has written to the Treasury and the Financial Conduct Authority watchdog (FCA) to assess whether a story leaked to Bloomberg, and published more than an hour before the budget was revealed, led to an “improper release of inside information”.…Guardian World · 29 Oct, 12:52
• Regulator urged to probe Budget bank tax raid leak: Share surge hours before Healey's speech sparks insider trading fearsIn a letter to the FCA, the chairman of the Treasury select committee raised concerns about potential market abuse after a surge in share prices ahead of the Budget.This is Money · 28 Oct, 22:03

In this story: John Healey · Meg Hillier · Financial Conduct Authority · Bloomberg · Standard Chartered · Lloyds · NatWest

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