HSBC profits make it “blatantly obvious” banks can afford more tax, TUC says

As HSBC announce Q3 pre-tax profits of $9.6 billion – up 32% on the year - and bringing its 2026 profits to $29.2 billion so far - up 26% on the year – the TUC is today (Tuesday) urging the Chancellor to increase taxes on banks in tomorrow'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. 

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

TUC General Secretary Paul Nowak said: 

"Some in the finance lobby have tried every which way to stop tax rises in the Budget. But these results make it blatantly obvious banks can afford to contribute more.

"It's not just HSBC. Barclays announced bumper profits last week too. And Britain's big four banks have made more than £200bn in profit over the last five years.

"With Trump and Putin's illegal wars rumbling on, working people have another cold, hard winter ahead. Households and businesses are going to need more support - and it's time for the Chancellor to make the banks pay a fairer share."