British banks brace for possible windfall tax as Budget nears, sources say
What you need to know
- UK banks are braced for a possible windfall tax
- The tax could be announced in the upcoming Budget
- The move comes as the government seeks to raise revenue to pay for the pandemic and war in Ukraine
Why it matters
- A windfall tax on banks could raise billions of pounds
- It would be a blow to the banking sector, which has already been hit by the pandemic and the war in Ukraine
- The move could also damage the UK's reputation as a financial centre
British banks are bracing for a possible windfall tax as the government prepares to unveil its Budget next week.
The tax, which would be levied on banks' excess profits, could raise billions of pounds for the Treasury.
The move comes as the government seeks to raise revenue to pay for the pandemic and the war in Ukraine.
However, the banking sector has warned that a windfall tax would be a blow to the industry, which has already been hit by the pandemic and the war in Ukraine.
The sector has also argued that a windfall tax would damage the UK's reputation as a financial centre.
The government has not yet confirmed whether it will introduce a windfall tax on banks.
However, sources close to the Treasury have said that the option is being considered.
The Budget will be unveiled by Chancellor Rishi Sunak on 23 March.
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