Profits at the UK’s four biggest banks are set to hit £33bn, as speculation mounts that chancellor Jeremy Hunt will raise taxes on the industry.
Third-quarter results next week from HSBC, Lloyds Banking Group, NatWest and Barclays are expected to show they are on course for a strong year.
Hunt is believed to be strongly in favour of a windfall tax on the sector to help plug the hole in public finances.
A plan to freeze corporation tax has been reversed by Liz Truss’s government. But Hunt has not disclosed what will happen to the additional 8% surcharge paid by banks. Without it being lowered, the combined rate on banks will rise to 33%. Rishi Sunak had planned for the surcharge to fall to 3% as corporation tax rose, meaning an overall 28% rate.
