Barclays' bumper profits show need for bank windfall tax at Budget, TUC says

As Barclays announce bumper Q3 pre-tax profits of £2.3 billion – up 12% on the year - and bringing its 2026 profits to £8.4 billion so far - up 15% on the year – the TUC is today (Thursday) urging the Chancellor to increase taxes on banks at next week's Budget.

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, The Tories slashed the surcharge from 8 to 3% in 2023, just as interest rates were reaching their peak – a move that has cost the Treasury £6 billion.

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 just reversing the Tory cuts and setting it at 8% would raise £9bn over four years.

TUC General Secretary Paul Nowak said: 

"Barclays' bumper profits aren't an anomaly. All the big banks are doing exceptionally well at the same time – but their windfall profits have been underpinned by mortgage misery for millions.  That’s why it’s time for banks to pay a fairer share. 

"At a time when the Chancellor needs to raise more revenue to support households and businesses through a looming energy bill crunch, Britain’s big four banks have made £200 billion in profit since 2021. They can - and should - pay more tax."