Banks in the UK pay corporation tax on their profits, alongside an additional surcharge currently set at 3%. The government has announced an increase to 6% for 15 months from January 2027, expected to raise around £1.5 billion.

The government says the additional revenue will help fund household energy bill support, including a one-off £100 payment to eligible households, while limiting longer-term impacts on the banking sector.

Supporters welcome banks contributing towards household support, while critics warn the increase could discourage investment, restrict lending or raise costs for customers.

The government has proposed equity loans to help eligible first-time buyers purchase a home with a smaller mortgage.

Under an equity loan scheme, the government contributes towards the purchase price in exchange for a share of the property's value. The amount repaid can therefore rise or fall with house prices.

Supporters argue such loans could make homeownership more accessible, while critics warn they may increase demand and house prices without addressing the shortage of affordable homes.

The government has announced a further two-percentage-point increase in income tax on savings interest from April 2027, bringing the total planned rise to four percentage points. Tax rates on savings interest would rise to 24%, 44% and 49% for basic, higher and additional-rate taxpayers respectively.

The increase would apply to taxable interest outside tax-free accounts such as ISAs, while existing Personal Savings Allowances would remain unchanged.

Supporters argue the increase would raise revenue for public services, while critics say it could discourage saving and reduce returns for savers.