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UK raises temporary bank tax surcharge to 6 percent

Britain doubled its bank tax surcharge to 6 percent for 15 months in a move that fell short of industry fears. The temporary levy aims to raise 1.5 billion pounds and prompted a rally in banking stocks.

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FILE PHOTO: Skyscrapers of the Canary Wharf commercial district are seen with The Shard building and construction cranes reflected in a perimeter glass wall of the viewing area of Garden at 120, in the City of London financial district, in London, Britain, September 23, 2025.

United Kingdom finance minister John Healey doubled the bank tax surcharge to 6% during Wednesday afternoon's budget, raising £1.5 billion over 15 months. The increase falls short of lender expectations, triggering a rally across major banking equities. Total bank taxation will reach 31% including corporation tax.