John Healey faces questions over pre-Budget bank tax report
The Treasury Committee chair has asked officials and the financial regulator to examine how details of a bank tax change appeared before the chancellor announced it.
John Healey faces questions in the UK over a report on bank taxes published before his 28 October Budget statement to Parliament, after bank share prices moved ahead of the announcement. The Guardian reported on 29 October that Treasury Committee chair Meg Hillier had asked the Treasury and Financial Conduct Authority (FCA) to examine the possible disclosure and its market impact.
Hillier wrote to Treasury permanent secretary James Bowler and FCA chief executive Nikhil Rathi. She asked the regulator whether the event might amount to an improper release of inside information and requested its assessment of the effect on relevant securities. Whether any disclosure was unauthorised or breached market rules remains unresolved.
What appeared before the Budget statement
According to The Guardian, Bloomberg published a story at 10.45am on 28 October, before Healey began his Commons statement at 12.30pm. Citing people familiar with the matter, the Bloomberg story said the planned increase in the bank corporation tax surcharge would be below the 8% some lenders had feared and would be temporary.
Healey subsequently announced a rise in the surcharge from 3% to 6% for 15 months, starting on 1 January 2027. He said the time-limited increase would help fund immediate support with household energy bills. The Standard also reported the announced rate and duration.
The Guardian reported that bank share prices moved before Healey delivered the Budget. Hillier said the Bloomberg story appeared to be ‘more than idle speculation’ and had implications for relevant securities. The reports do not establish who provided the information or whether anyone profited from trading.
What Hillier has asked officials to establish
Hillier asked Bowler to confirm whether banks, their representatives or trade bodies had been told about the surcharge change before the Budget, either in outline or in detail. She also sought an account of how many people had access to the information. Those questions address who might have known the plan before it was announced.
The Standard reported that the Treasury Committee was due to begin its Budget inquiry the following week and that responses from the Treasury and FCA were expected to be made public. The Guardian said Healey was expected to face questions about the matter when he appeared before the committee the following month.
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Sources and context
- John Healey faces questions over budget leak that moved bank share pricesThe Guardian
- Treasury urged to investigate possible Budget leak after 'tax report moved markets'The Standard
AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.