Calls for UK bank tax to fund cost of living help as HSBC profits hit £7.5bn
Summary
HSBC reported a large profit of £7.5 billion in the second quarter of 2024, helping push total profits of the UK’s top four banks to £29.2 billion in the first half of the year. Campaigners are calling for a new tax on banks’ high profits to raise money for help with living costs.Key Facts
- HSBC made £7.5 billion in profits between April and June 2024, a 60% increase from last year.
- Higher interest rates helped banks earn more by charging more for loans and mortgages.
- HSBC plans to increase banker bonuses and resume buying back its own shares.
- The top four UK banks (HSBC, NatWest, Barclays, Lloyds) earned £29.2 billion in the first six months of 2024.
- Campaign groups want a windfall tax on banks that could raise £19 billion to fund public cost-of-living support.
- Proposed tax would target bank revenues over £800 million with a 38% rate, similar to Spain's bank levy.
- Supporters say the tax could fund electricity bill VAT cuts, bus fare caps, and business rate cuts for hospitality venues.
- Banks caution that their ability to lend money is important for economic growth under the new UK government.
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