# Bank tax raid could spark exodus, City warns Healey

> City warns Labour's bank tax hike risks UK talent and capital flight.
- Title: Bank tax raid could spark exodus, City warns Healey | Shortify
- Summary: City warns Labour's bank tax hike risks UK talent and capital flight. UK finance groups warn higher bank taxes could trigger capital and talent exodus as…
- Keywords: labour, bank taxes, city, chancellor, tax raid, talent exodus, financial services, news, entertainment, Bank, tax, raid
- Source: Dailymail — https://dailymail.com/money/markets/article-16197071/Bank-tax-raid-spark-exodus-City-warns-Healey.html?ito=1490&ns_campaign=1490&ns_mchannel=rss
- Published: 2026-10-09T20:00:45+00:00
- Read time: 1 min
- Topics: uk, labour, bank taxes, city, chancellor, tax raid, talent exodus, financial services, news, entertainment
## City warns Labour's tax plan
UK finance groups warn higher bank taxes could trigger capital and talent exodus as Labour prepares for Budget.

> As well as weakening investor confidence and damaging UK attractiveness, a higher tax burden may not necessarily generate higher tax receipts if capital, people and businesses move elsewhere
## Chancellor Healey meets banks
Chancellor John Healey summoned top bank bosses to Downing Street amid warnings of a 'challenging fiscal picture'.
## Tax rates comparison
UK banks pay 46.5% tax versus 27.9% in New York and 39% in Frankfurt.
## Billionaires flee UK
Billionaires with £120 billion assets have fled the UK since Labour started raising taxes.
## Business groups' warning
Five finance groups warn tax hikes could undermine UK growth and financial services competitiveness.

> A tax raid would also buck the trend of some countries reviewing their regulations to try to make conditions more competitive for banks
## Tax impact on lending
Higher taxes risk reducing finance and insurance availability for households and businesses.

> The letter warned that UK lenders are already paying higher taxes, at a rate of around 46.5 per cent, than those in rival financial centres
## Call for tax certainty
Business groups urge government to pledge no further bank taxes to protect UK financial services.

> With the right regulatory policy and taxation framework, UK financial and related professional services can play an even greater role in delivering investment, prosperity and resilience across every region and nation of the UK
## Key takeaway

UK finance groups warn higher bank taxes could trigger capital and talent exodus as Labour prepares for Budget.