NatWest profits: Case for increasing the tax on bank profits is “overwhelming”, says TUC

• NatWest profits soar by 20.4 per cent compared to the same period last year – hitting £4.3 billion in the first half of the year

As NatWest announces Q2 pre-tax profits of £2.3 billion, bringing its half year 2026 profits to £4.3 billion – up 20.4% on the first half of last year – the TUC is today (Friday) calling for the government to increase taxes on banks to bring down energy bills.

The union body wants the government to use the money to pay for a social energy 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.

This could pay for a social tariff to bring down energy bills to all those on low and middle incomes by up to £559 a year.

Responding to NatWest’s half-year profits, TUC General Secretary Paul Nowak said:   

“The case for increasing the tax on bank profits is overwhelming.

“The big banks are coining it in from higher interest rates while working people are struggling with mortgage misery and higher bills. 

"Andy Burnham has rightly been straight out of the blocks with measures to help households with the cost of living. But with no real end in sight to the Iran war, energy prices will rise further which is why the government will need to go further in the months ahead.

"The prime minister has a clear opportunity to show he’s on the side of working people by taxing banks to cut bills – he should take it. It’s the right thing to do and banks can easily afford it.”