Big four banks make £29bn in first half of year as TUC calls for increase in tax on bank profits to cut bills

• HSBC profits soar as the bank posts quarterly profits up 60% on the same period last year
• With ‘big four’ profits booming, the TUC says there is now a “mountain of evidence” to suggest banks can afford to pay more tax 
• Union body is calling for an increase in the bank surcharge to cut energy bills for the majority of households

The TUC is today (Tuesday) calling for the government to increase taxes on banks to bring down energy bills as the big four banks rake in £29bn in total profit in the first half of the year.

The latest figures come as HSBC announces Q2 pre-tax profits of $10.1 billion (£7.6 billion), up 60% on the same period last year, and bringing its half year 2026 profits to $19.5 billion (£14.5 billion).

HSBC is the latest bank to post bumper profits as the TUC says there is “now a mountain of evidence” to suggest banks can afford to pay more tax. 

The union body wants the government to use the money to pay for a social tariff that brings down energy bills by up to £559 a year for those on low and middle incomes.

Currently the bank surcharge is an additional 3% corporation tax on the profits of banking companies above £100 million, which was reduced from 8% in April 2023 by the Conservatives – just as bumper profits kicked in alongside higher interest rates.

The TUC is calling for the government to increase the surcharge to raise up to £60 billion over the next four years. 

• A 16% surcharge, which is doubling what it originally was before the Conservatives cut it, would deliver £24bn over four years.

• A 35% surcharge, which would be the same level as the windfall tax the Conservatives imposed on energy companies, would deliver £60bn over four years.

Even the bare minimum of reversing the Tory cuts and setting it at 8% would raise £9bn over four years.

TUC General Secretary Paul Nowak said: 

"There is now a mountain of evidence to suggest that banks can easily afford to pay more tax.

"While higher interest rates have meant mortgage misery and bigger bills for the rest of us, the big banks have been rolling in it. 

"Andy Burnham has rightly prioritised cost of living measures in his first days as prime minister, but as the war in Iran rumbles on energy prices will rise further - and the government will need to do more to protect households. 

"That’s why it’s time to increase the tax on bank profits to cut bills. It’s common sense and it’s the right thing to do.”