Reader Q&A: Our money and economics correspondents answer your Budget 2026 questions – live
A reader asked why the Chancellor’s Budget did not raise more from wealthy people and banks, arguing that the measures left substantial potential revenue untapped. The reply agreed that reforming capital gains tax could raise more, while noting that the government may be concerned about avoidance and the effect on international investors.
The reader said the bank surcharge increase is temporary and pointed to Lloyds’ near-doubling of pre-tax profits, as well as proposals to tax banks’ UK retail income. The correspondent said a lasting bank tax could have been bolder, but suggested the Treasury may have faced lobbying and warnings that banks would pass costs on to customers through higher interest rates.
In short
- A reader questioned why the Budget left more wealth untaxed.
- The correspondent said capital gains tax reform could raise more revenue.
- The bank surcharge increase is temporary, amid concerns about costs passed to customers.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The Budget could have raised more from wealthy people and banks, particularly through capital gains tax reform or a lasting levy on banks’ UK retail income. Large bank profits and the temporary nature of the surcharge support the case that these sectors could contribute more, helping fund public services or reduce pressure elsewhere.
The case against
Higher taxes on capital gains or banks could encourage avoidance, deter international investment or reduce lending. The Treasury may also have judged that banks would pass some costs on to customers through higher interest rates, so a more cautious or temporary measure could limit unintended effects.
Explained simply
The Budget is the government’s plan for taxes and public spending, set out by the Chancellor of the Exchequer. It affects how much money the government raises and how that money is used for public services and other priorities.
Capital gains tax is charged on profits made when people sell assets such as shares or property. Banks also pay corporation tax and, in the UK, an additional bank surcharge; changes to these taxes can affect government revenue as well as banks’ costs and decisions.
Debate about taxing wealthy people and banks often weighs potential revenue against possible effects on investment, customers and the wider economy. The Treasury, which manages the government’s finances, must make those choices while considering how people and businesses might respond to tax changes.