By Sohaib Shams
Lloyds Banking Group chief financial officer William Chalmers has warned that the planned doubling of the bank corporation tax surcharge is "unhelpful" to achieving UK economic growth, urging the government to ensure the increase remains temporary.
Budget Announcement
Chancellor John Healey announced on Wednesday that banks will pay an extra 3 per cent on their corporation tax surcharge from January, raising the rate to 6 per cent for 15 months. The measure is expected to raise £1.5 billion for the Treasury to help fund support for household energy bills.
Lloyds Reaction
Chalmers acknowledged the fiscal constraints facing the government but stressed that reducing the cost of lending is essential for economic growth and international competitiveness. He questioned the linkage between energy prices and bank taxes, arguing that lending to the real economy is the best defence against energy price impacts.
Financial Results
Lloyds reported a pre-tax profit of £2.3 billion for the third quarter of 2026, nearly double the £1.2 billion recorded a year earlier. The previous year's figure was depressed by an £800 million provision for a motor finance mis-selling scheme. Underlying net interest income rose 10 per cent year-on-year, while lending and customer deposits grew across the year. The bank said it helped more than 50,000 first-time buyers purchase a home with over £1.25 billion of lending.
