Big four banks have made almost £1bn a week this year – TUC

• TUC calls for banks to pay their fair share ahead of big four banks posting their latest profits this week

The big four banks have been making almost a billion a week in profit so far this year, according to the TUC, as the union body today (Monday) called for banks to “pay their fair share” through an increase in the bank surcharge.

The bank surcharge – a tax on bank profits – was cut under the Conservatives from 8% to 3%.

In total, according to Positive Money, the banks have made £24.1bn in just the first half of 2025, which amounts to £0.93bn a week and £132m a day.

The figures come ahead of the big four – Barclays, NatWest, Lloyds and HSBC - posting their latest quarterly profits this week. 

Last year, the big four banks made £45.9bn according to Positive Money. They have been tipped to exceed that this year – as profits have risen significantly from pre-pandemic levels and OBR forecasts show that profits will remain high over coming years.   

Bank surcharge

An increase in the bank surcharge could raise significant funds over the coming years, according to TUC analysis.

In recent years, banks have made significant unexpected profits because of increased interest rates. This has led to higher returns both from net interest (the difference on interest charged to borrowers and paid to savers) and interest paid to banks on reserves they hold at the Bank of England. 

As a result, bank profits are now higher than they were in the period before the financial crisis. But under the Conservatives, taxes on banks were slashed. An increase in the bank surcharge could raise between £20-50bn over the next four years:

• A 16% surcharge, which is doubling what it originally was before the Conservatives cut it, would deliver £20bn
• A 35% surcharge, which would be the same level as the windfall tax the Conservatives imposed on energy companies, would deliver £50bn

Even just reversing the Tory cuts and setting it at 8% – which the TUC says is the “bare minimum” – would raise £8bn over four years.

Significant support

TUC polling shows significant support for a windfall tax on banks, with two in three (66%) backing one.

This rises to 83% among Conservative to Labour switchers in the 2024 general election and 73% among Labour voters from the 2024 election now leaning to Reform.

TUC General Secretary Paul Nowak said: 

"After the Tories slashed the bank surcharge, high interest rates have created a profits bonanza for banks.

“Banks have done very well out of the British people. It's only right that they use their bumper profits to pay a bit more in tax to invest in our hospitals, schools and local councils.

“That’s why at the Budget, the government should be asking those with the broadest shoulders - like banks - to pay their fair share.

“After 14 years of Conservative cuts and austerity, the damage still runs deep with the country in dire need of sustained investment. 

“Getting banks to pay a little more to help rebuild Britain is just common sense.”

ENDS