Barclays’ bonanza profits show banks can pay more tax – TUC

As Barclays announce surging Q2 pre-tax profits of £3.3 billion – up 31% on the year and bringing its half year 2026 profits to £6.1 billion – the TUC is today (Tuesday) calling for the government to increase taxes on banks to bring down household 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. 

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 Barclays’ Q2 pre-tax profits, TUC General Secretary Paul Nowak said:

“Big banks like Barclays are raking it in while working people and local businesses are struggling. High interest rates have been a boon for banks but have meant mortgage misery and higher bills for the rest of us.

“Andy Burnham has rightly pledged to prioritise tackling the cost-of-living crisis. With the war in Iran rumbling on, energy prices are only going to rise – and households will need more support in the months ahead.

“This is not a ‘hard choice’. Barclays' bonanza profits show that banks can easily afford to pay more tax. This is a chance for the new Prime Minister and Chancellor to show whose side they’re on. It’s time to increase the bank surcharge and tax banks to bring down energy bills.”