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Britain's finance minister hikes bank tax to 6%

By Reuters News12 hours ago Updated

LONDON, Oct 28 (Reuters) - Britain is to increase a tax surcharge on banks to 6%, finance minister John Healey said on Wednesday as part of his first budget announcement, resisting intense lobbying pressure from lenders in recent months which had argued any such increase could curb lending.

The tax hike comes via an increase in the surcharge banks pay on profits above a set threshold from 3% to 6%, partially reversing a cut down from 8% three years ago under then-Prime Minister Rishi Sunak.

The hike will be temporary and last for 15 months, Healey said.

Big British lenders such as HSBC HSBA.L, Barclays BARC.L, Lloyds Banking Group LLOY.L and NatWest NWG.L have reported bumper profits in recent years, fuelled by favourable interest rates.

Shares in the banks rallied on Wednesday after the tax hike was smaller than feared.

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