This report does not constitute a rating action. LONDON (S&P Global Ratings) Oct. 28, 2026--U.K. banks'strong profitability enables them to manage the temporary tax increase announced today at current rating levels. We think that banks will seek to pass on the charge to customers as far as possible, and the residual amount will primarily be reflected in lower share buybacks. We do not see material implications for the sector's capital ratios or lending appetite. In the Autumn Budget 2026 announced today, the U.K. government doubled the bank-specific corporate tax surcharge to 6% for a 15-month period starting January 2027. Following this period, the tax is intended to revert to the current 3% level. Banks pay the surcharge on domestic
