It has been widely reported the chancellor was considering overturning plans to cut the bank surcharge, to offset a broader hike in Corporation Tax, which sparked concern about the City’s future global competitiveness.
Hunt is looking to raise around £55bn in the autumn fiscal statement next week in a bid to curb government borrowing.
The Financial Times reports Hunt will slash the bank surcharge from 8 to 3 per cent, as originally planned by Rishi Sunak, when Corporation Tax increases to 25 per cent next year for the UK’s most profitable firms.
This will result in banks paying 28 per cent tax on their profits, which is still higher than the current 27 per cent they pay.
A Treasury source said that the rate of the bank surcharge was “still being decided”.
Read more at City A.M.
