John Healey calls UK banks a ‘jewel in the crown’ ahead of budget

Chancellor John Healey said UK banks are part of the “jewel in the crown” of the British economy. He was speaking to UK journalists during the International Monetary Fund’s annual meeting in Bangkok.

Healey did not say whether the government plans to raise taxes on banks. He said the decisions would be announced in the budget in two weeks, rejecting attempts to anticipate his plans.

The chancellor said banks are often viewed as large, distant financial institutions even though they are closely tied to the UK’s economy and future prospects. He also said his special responsibility was to protect the resilience of the British economy.

Support promised before the budget

Healey has promised that his first budget will give consumers and businesses “breathing space” as costs rise. He also said he would stick to Labour’s fiscal rules.

The chancellor welcomed the IMF’s support for the UK’s fiscal plans. Some Labour MPs are urging him to increase taxes on the gambling sector.

His comments came after a stronger-than-expected economic reading. The Office for National Statistics said UK GDP rose 0.1% in August after growing 0.4% in July; City economists had forecast a 0.1% contraction.