Budget Measures and Bank Levy
Chancellor John Healey delivered his first budget, introducing a series of fiscal measures including a 15-month temporary increase in the bank corporation tax surcharge from 3% to 6% starting in January. The chancellor stated that banks would help provide breathing space for families through the levy, which was initially feared by markets to rise as high as 8%. Alongside the banking sector changes, the budget outlines updated Office for Budget Responsibility forecasts, projecting UK GDP growth of 1.2% this year and 1% next year, alongside broader energy bill relief and business rate adjustments.