Asked on bank tax, UK's Healey stresses sector's broader contribution

Healey Stresses Broader Role of Banks Amid Debate Over UK Bank Tax

UK Bank Tax Debate and the Economic Role of Banks

By David Milliken

Healey's Position on Bank Profits and Taxation

BANGKOK, Oct 15 (Reuters) - British finance minister John Healey said banks were central to the country's economic future on Thursday, when pressed by reporters about the likelihood of imposing a windfall tax on their bumper profits.

Upcoming Budget and Potential Changes

Healey is due to set out his first budget on October 28 and increasing the 'bank levy' charged on top of standard corporation tax could raise billions of pounds at a time when many lenders have profited from rising interest rates.

Concerns from Banks and Analysts

However, British banks argue they are already highly taxed compared with some other major economies and some analysts fear that higher bank taxes would see them put up charges.

Healey's Broader Perspective on Banks

Economic Importance of Banks

"My observation on the banks is that people too often see them as big, distant financial institutions, when they are hardwired into the economic fabric of this country and our future prospects," Healey told reporters in Bangkok, where he is attending the International Monetary Fund's annual meeting.

Budget Decisions and Future Policy

"That said, I've got decisions to take in the budget and I will," he added, having previously said his comments were not intended to be a steer on any intended tax changes.

Additional Comments and Interviews

In a separate interview with Bloomberg Television, Healey described banks as "a part of the jewel, if you like, in the British economic crown".

Speculation on Tax and Capital Requirements

When asked if higher taxes on banks could be offset by lower capital requirements, he said he would not be drawn into speculation about the budget.

(Additional reporting by Sarah Young; editing by William James and Paul Sandle)