Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the effects of the Bank Corporation Tax Surcharge on the availability and cost of lending to small and medium-sized enterprises, and the implications for those businesses’ investment and recruitment.

At Budget 2026, the government announced a temporary increase to the Bank Corporation Tax Surcharge rate, setting it at 6% from 1 January 2027 for a period of fifteen months, returning to 3% from 1 April 2028.

This increase has been designed as a temporary additional contribution that raises revenue to support families while maintaining the sector’s ability to support small and medium-sized enterprises through lending and investment.