UK economy grew 0.1% in August ahead of Healey's first Budget, and the Chancellor signals a tax raid on banks
The economy grew by 0.1% in August, the BBC and the Financial Times reported, from Office for National Statistics figures published on Thursday. Sky News called it surprise growth, City AM credited a boost in production, and the Telegraph framed the same release as a slowdown. Chancellor John Healey said during an IMF visit that the Budget must reflect a 'tough time', the Standard reported, and promised to 'stay the path' on the deficit, the FT reported. The FT reported that he signalled a Budget raid on banks, and the Guardian and BBC reported the same expectation. The Evening Standard carried a union call for a levy of at least £9bn on banks, a figure no other outlet gave. Business groups warned against a £1bn 'office tax' rise on London, City AM and the Standard reported.
Strong growth makes the Chancellor's sums easier, but a month of 0.1% is small and can be revised. A bank levy would raise money without touching most households, though banks might pass costs on.
Nothing changes until the Budget on 28 October. Savers and borrowers should watch whether banks respond to a tax by changing rates.
Supporters of a bank levy say banks earn healthy profits and can pay more.
Critics say a levy could reduce lending and raise costs for customers, and that business needs lower taxes and a fix for business rates.
The 0.1% is a fact and the Budget details are briefing. The things to check are whether the Treasury gives a rate or a sum for banks, and whether the numbers add up without more borrowing.
DailyDrop U.K. edition No. 12 · Morning · FRI., OCT. 16, 2026