Reports indicate that John Healey is preparing to implement a tax increase on the banking sector as part of the government's forthcoming budget strategy. While specific details regarding the scale or structure of these tax changes remain pending, the move is being framed as a significant fiscal adjustment for the financial industry.

Simultaneously, Bank of England Governor Andrew Bailey provided an update on the national economic outlook while attending the Institute of International Finance meeting in Bangkok. Bailey addressed the current state of inflation, noting that the Bank of England’s monetary policy committee is monitoring the situation closely ahead of their next interest rate decision in three weeks. According to Bailey, there is currently little evidence of 'second round effects'—a phenomenon where inflation spreads beyond energy costs into broader wage and price increases. He described the current indicators of such spread as 'quite subdued,' suggesting a cautious but stable outlook for the UK economy.