HSBC’s jump in profits are prompting fresh calls for new bank taxes in the budget.

As the Guardian reported earlier this month, Healey has decided to tap the financial sector for additional revenue. One way would be to reverse cuts to the bank surcharge made by former chancellor Jeremy Hunt – which would raise upwards of £2bn a year.

“It’s not surprising that HSBC have made such significant profits in the last quarter, but it will be difficult news to swallow for households struggling with rising mortgage costs. Like other big banks, its profitability has depended on keeping interest rates on savings accounts low, and a “stealth subsidy” from taxpayers via the Bank of England due to quantitative easing.

“While the rumours of a bank tax change in the Budget are welcome, it is unlikely to go far enough. While banks are making over a billion pounds a week of profit, NEF analysis suggests that the restoration of the bank surcharge to 8% would raise just £1.8bn a year from them.The chancellor should go further by clawing back the stealth subsidy, and use this to fund inflation-busting investment and keep the essentials of life affordable for ordinary people.”

“We only have 24 hours to go. We are very encouraged by the government’s growth agenda, particularly how we can lean-in to support not just specific sectors like UK innovation, infrastructure. and the UK trade deals, but also in terms of how we are the connector for the UK with the rest of the world, given the success the government has had with many of these international trade deals.”

“Now, obviously, as our customers make their business investment decisions, we will respond accordingly, because that’s what we do as banks. When the lending demand goes up, we lend more. We are ready with the right risk appetite to do so. We’ll just have to see how businesses and customers react.”