# John Healey’s plan for a ‘Robin Hood’ Budget may not be as risk-free as he thinks

- URL: https://talkfuse.com/story/john-healeys-plan-for-a-robin-hood-budget-may-not-be-as-risk-free-as-he-thinks/
- Published: 2026-10-28T01:07:42+00:00
- Original publisher: The Independent (publisher lean: Left)
- Original article: https://www.independent.co.uk/news/uk/politics/budget-john-healey-bank-tax-b3074175.html
- Topics: Politics

## Key points

- Healey may raise the bank surcharge from 3 per cent to around 8 per cent.
- Banking accounted for about 8 per cent of UK output in 2025.
- The article warns higher taxes could encourage banks to relocate.

## Summary

The article argues that John Healey’s supposedly cautious Budget could include a sharp increase in taxes on banks, helping fund measures such as removing VAT from energy bills and keeping bus fares capped at £2. The proposal is presented as politically attractive, but the article warns that higher taxes could prompt banks to move business overseas and weaken a major part of the UK economy.

Banks have made about £200bn in profits over five years, and Labour is considering raising the bank surcharge from 3 per cent to around 8 per cent, on top of 25 per cent corporation tax. Banking contributed £223.6bn, or about 8 per cent, of UK economic output in 2025. The article says some international institutions are considering relocation over the UK’s tax environment, although it notes that the scale of this threat may be overstated.

## Coverage

- [The Independent: John Healey’s plan for a ‘Robin Hood’ Budget may not be as risk-free as he thinks](https://www.independent.co.uk/news/uk/politics/budget-john-healey-bank-tax-b3074175.html)
- [Daily Mail: DAILY MAIL COMMENT: As John Healey unveils his first Budget, the prospect of even more benefits is adding insult to injury](https://www.dailymail.com/news/article-16243753/DAILY-MAIL-COMMENT-John-Healey-unveils-Budget-prospect-benefits-adding-insult-injury.html?ns_mchannel=rss&ns_campaign=1490&ito=1490)

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.