Healey hails banks as 'jewel in the crown of the British economy' amid fears over Budget tax raid

Updated: 08:29 EDT, 15 October 2026 John Healey today declared that banks are a ‘jewel in the crown of the British economy’ in a sign he may not hit the industry with higher taxes.Speaking on the sidelines of the International Monetary Fund meetings in Bangkok, the Chancellor said banks are ‘a big contributor to the economy’ and ‘an important part of our business’.The comments sparked hopes he may resist calls from unions and Labour MPs to hammer lenders with higher taxes in the Budget this month.However, he refused to rule out such a move, leaving the City on edge ahead of his maiden Budget on October 28. John Healey (centre) with Lars Klingbeil, Vice-Chancellor of Germany (left), and Jim Chalmers, Treasurer of Australia, at the IMF annual meetings in Bangkok ‘My observations on the banks are just that people too often see them as big distant financial institutions, when they are hardwired into the economic fabric,’ Healey said.‘That said, I’ve got decisions to take in the Budget, and I’ll set those out in two weeks’ time.’The Trades Union Congress has called for ‘a windfall tax on bank profits to fund cuts to energy bills for everyone on low and middle incomes’.But the industry has warned against such a move, suggesting it will push up the cost of doing business and in turn the cost of borrowing for millions of households and businesses.In a hard-hitting letter to the Chancellor last week, a coalition of influential business groups warned a tax raid could backfire by sparking an exodus from Britain.‘As well as weakening investor confidence and damaging UK attractiveness, a higher tax burden may not necessarily generate higher tax receipts if capital, people and businesses move elsewhere,’ the letter said.As well as praising the banks, Healey sought to calm jitters on the bond markets that have pushed UK government borrowing costs to the highest level for 28 years in recent weeks.He insisted he will ‘meet’ the fiscal rules ‘in full’ while also hinting at support for families and businesses in the Budget.‘I've been very clear, also, the Prime Minister talked about recognising the cost of business, not just the cost of living,’ said Healey.‘And so, I want the Budget to be a Budget that gets Britain a bit of breathing space. But also, reinforces the strength of our fiscal plans.’DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you