UK Banks Expect to Be Hit With Higher Taxes in Upcoming Budget

Senior executives from major British banks have privately told the BBC that they believe the financial sector will be 'on the menu' when the UK Chancellor presents the upcoming Budget. The executives anticipate measures including increased taxes on banking profits or financial transactions.

The Chancellor is expected to outline plans to increase government revenue to fund healthcare, infrastructure, and other public spending commitments. The banking sector, which has benefited from higher interest rates in recent years that boosted profits, is seen as a politically viable target.

British banks have already been subject to a surcharge on their profits, and any further increases could affect their lending behavior and competitiveness against European and international rivals. Industry groups are expected to lobby against significant tax increases.

The Budget is scheduled for later this month, and financial markets have been closely watching for signals about the Chancellor's plans.