Lloyds finance chief criticises link between bank tax rise and energy support
William Chalmers, chief financial officer of Lloyds Banking Group, has criticised UK Chancellor John Healey for linking higher bank taxes to energy bill support. The Guardian reported the criticism on 29 October 2026.
Healey has announced plans to double the bank surcharge, an additional tax on banks, from 3% to 6% from January. The increase would run for 15 months and would help pay for energy bill support. The Treasury, the government's finance ministry, has promised to write that 15-month limit into the finance bill, the legislation that turns tax changes into law.
Chalmers said he did not see an obvious link between energy prices and bank taxes. He warned the government against extending the higher bank levy beyond March 2028, and said he hoped the increase would be temporary and limited. A Lloyds executive also called the bank tax hike "unhelpful" to the government's aims for UK economic growth.
The plans follow a period of speculation about the autumn budget. In mid-October, The Guardian reported that Healey was poised to raise taxes on banks in the budget, and that his first budget was expected to include an energy support package for households and businesses. Earlier in October, Healey said banks were key to the economy while keeping bank tax options open. He also stressed his commitment to lowering public borrowing, according to Reuters.
Lloyds has recently reported strong earnings. The bank posted third-quarter pre-tax profits of £2.3bn, up from £1.2bn a year earlier. It has paid around £1.8bn in corporate taxes so far in 2026, according to The Guardian.
