Hunt mortgage summit: Scrap tax cuts to banks and help homeowners facing repossession

Embargoed until 22.30 Thursday 22 June

The Liberal Democrats have called on Jeremy Hunt to reverse the £3bn of tax cuts being given to banks this year, and use the money to help struggling homeowners at risk of losing their homes.

It comes as the Chancellor is set to hold a summit with banks tomorrow to discuss the mortgage crisis. The Liberal Democrats said that families at risk of losing their homes because the Conservative government crashed the economy need urgent support not more empty words.

Liberal Democrat Treasury Spokesperson Sarah Olney MP said:

“The Conservative government crashed the economy and sent people’s mortgages spiralling. Homeowners on the brink are now looking for urgent help, not yet more empty words.

“The Chancellor needs to bring forward concrete measures to help people at risk of losing their homes, or else this summit risks being nothing less than a PR gimmick.

“That must start with reversing the massive tax cuts being given to the big banks and using the money raised to help struggling households.

“It beggars belief that the Conservatives are choosing to hand billions of pounds of tax cuts to the banks, while refusing to help families worried sick about keeping a roof over their head.”

ENDS

Notes to Editor

Jeremy Hunt’s Spring Budget confirmed a cut to the Bank Surcharge from 8% to 3% from 1 April 2023. Combined with the government’s cuts to the Bank Levy that have taken place since 2016, it means banks are being handed a total tax giveaway of £3.2 billion in 2023-24.

This would be enough to provide temporary support to around 1.8 million homeowners on lower incomes suffering most from soaring mortgage rates and who are at risk of losing their homes.

Sources: 2016-17 revenues from ONS, Public sector current receipts. All other data from OBR Economic and fiscal outlook – March 2023