Healey Faces Questions Over Budget Leak That Moved Bank Shares
John Healey is facing questions over whether he allowed market-sensitive budget information to leak before his statement, a statement that moved bank share prices, according to The Guardian. Meg Hillier, chair of the Commons Treasury select committee, has written to the Treasury and the Financial Conduct Authority (FCA), the City's financial regulator, to ask whether the leak amounted to an improper release of inside information. Inside information is non-public information that could affect the price of shares or other financial instruments.
The story at the centre of the questions was published by Bloomberg at 10:45am on budget day. It reported that the bank corporation tax surcharge, an extra tax on banks' profits, would be lower than the feared 8% and would be temporary. The story quoted "people familiar with the matter." An updated version at 11:03 noted movements in the prices of bank shares. Healey delivered his budget statement in the Commons at 12:30pm.
The budget confirmed a temporary increase in the surcharge rate from 3% to 6%, running for 15 months from 1 January 2027. The government said the extra revenue would fund measures to give households breathing space.
In letters dated 28 October 2026, which the Treasury Committee has published, Hillier wrote to James Bowler, the permanent secretary of the Treasury, the senior civil servant who runs the department, and to the chief executive of the FCA. She asked the FCA for its view on whether the event might be considered an improper release of inside information, and for its assessment of the impact on the market in relevant securities.
Hillier also urged the Treasury to confirm that banks, their representatives or trade bodies were not told of the surcharge changes before the budget. She asked the department to disclose how many people had access to the information.
Banks have criticised the tax increase. According to the Financial Times, they described the move as "end of Rome level of stupidity."
Healey is due to appear before the Treasury Committee next month to explain the leak.
