City AM quotes Vadim Romanoff on the possibility of a bank surcharge hike in the 2025 Budget
min readAhead of the UK's long-awaited 2025 Budget, City AM reports on comments made by House of Commons speaker Sir Lindsay Hoyle, reprimanding the Treasury for what he calls a “hokey cokey” Budget.
The piece goes on to suggest that few sectors have been ‘shaken all about’ on the road to the Budget more than the banking sector – "an industry which Reeves had spent months currying favour with".
Despite Reeves' apparent 'soft spot' for banks, the article continues, the back-and-forth leaks from the Treasury have left lenders 'on edge', with top bank stocks see-sawing as investors continue to be made nervous by conflicting tax rumours.
Vadim Romanoff, Partner in our Corporate Tax and Incentives team, explains that "government messaging has been inconsistent in recent weeks, with mixed briefings and shifting tones around potential tax measures". He adds that a hike to the bank’s surcharge – which sits at three per cent – remains a “live option”, with some estimates suggesting it could be raised as high as eight per cent.
Vadim explains that such a move “could generate meaningful revenue while being framed as a correction rather than a raid”.
Read the full article in City AM here.
