Tory tax break for banks has cost UK public purse £6bn, says TUC
Summary
Tax cuts for big banks in the UK have reduced government revenue by £6 billion over three years, according to the Trades Union Congress (TUC). The TUC urges the government to raise taxes on banks to help fund public services and ease the cost of living.Key Facts
- In 2023, the UK government cut the bank surcharge tax from 8% to 3% for banks.
- This tax cut happened alongside a rise in corporation tax from 19% to 25%.
- The four largest UK banks made £200 billion in pre-tax profits over five years.
- The TUC estimates the tax cut will reduce government revenue by £2.3 billion in 2023-24, £1.7 billion in 2024-25, and £2 billion in 2025-26.
- Campaigners want to increase the bank surcharge to raise up to £60 billion to help with household bills.
- Bank leaders have warned that higher taxes could harm investment and jobs.
- Proposals include raising the surcharge to 16%, 35%, or restoring it to 8%, with varying expected revenues.
- Some groups argue banks are making record profits thanks to high interest rates and can afford to pay more tax.
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