JP Morgan boss doesn’t want banks like his to pay their fair share, TUC says

The TUC has urged the new Chancellor to show working people he’s on their side by taxing banks to cut bills. It follows reports in the Financial Times that JP Morgan Chase boss Jamie Dimon has lobbied Chancellor against increasing taxes on banks.

The UK’s big four banks, Barclays, Lloyds, NatWest and HSBC have made £29bn in profit in the first half of the year. Bank bonuses have never been higher in cash terms and have seen their highest real terms quarter since the 2008 financial crisis.

The TUC is calling for an increase in the bank surcharge 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: 

“Let’s be clear. Jamie Dimon doesn’t want banks like his to pay their fair share. But while bank profits continue to soar, ordinary working people are paying more in bigger bills and higher mortgage rates. 

“People are sick and tired of being told they have to tighten their belts while profits, dividends and bankers’ bonuses hit record highs. The new Chancellor has a clear opportunity to show working people he’s on their side by asking banks to pay fair taxes to cut energy bills.”