Bankers and unions set for clash over possible Burnham tax raid on UK banks
Summary
UK bankers and trade unions are preparing for a conflict over a proposed tax increase on banks to fund support for struggling households this winter. Andy Burnham, a Labour politician, is considering this tax, which banks oppose, saying it would harm the economy, while unions support it as a way to help people facing rising costs.Key Facts
- Andy Burnham wants to introduce a new tax on banks to help families struggling with rising living costs.
- Banks like NatWest, Lloyds, and Barclays have seen large profits recently due to higher interest rates.
- The Trades Union Congress (TUC) supports the tax and says it could raise £9 billion over four years.
- Bankers argue that a higher tax would damage the UK economy because the financial sector is one of the few growing industries.
- Paul Nowak, TUC leader, says ordinary workers should not pay more taxes, and wealthier sectors must contribute more.
- Bank profits reported: NatWest £7.7bn, Lloyds £6.7bn, Barclays £9.1bn in 2025.
- Banks plan over £15bn in shareholder payouts from 2026 to 2028.
- The tax debate has intensified following recent interest rate rises linked to the US-Israeli war on Iran.
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