Chancellor John Healey plots bank tax hike to raise £2bn as lenders warn it could cost UK economy £20bn

JOHN Healey is set to launch a £20billion raid on banks to plug part of a black hole in the public finances. The Chancellor, who yesterday branded financial institutions “the jewel in the British economic crown”, is lining up a hike in the surcharge on their profits above £100million from three per cent to eight per cent. The move could raise up to £2billion for the Treasury, although banks fear it will cost the wider economy £20billion over the next decade. David Postings, boss of UK Finance, wrote: “This could come at the expense of the investment needed to drive growth across the UK.” Andrew Griffith, the Shadow Chancellor, said: “Britain needs growth. But a raid on the financial services sector will stifle it. “Labour should be backing businesses and wealth-creators, not making their lives even harder. Rather than hiking taxes yet again, Labour should cut spending.” READ MORE ON TAX RAIDS Healey’s proposals have also sparked fears that banks could pass extra costs on to customers, causing higher costs for hard-up Brits. The Sun revealed earlier this week how UK taxes were rising faster than any other nation in the G7. The Chancellor has said his first Budget, on October 28, would give households more “breathing space”.