The Mirror is asking whether Prime Minister Andy Burnham should consider a windfall tax on banks to help struggling Brits, after the 'big four' lenders reported combined profits of more than £29 billion in just six months.
Burnham has signalled he will tackle the cost of living crisis, having previously told The Sunday Mirror that helping hard-pressed households was his top priority. He has already introduced a month of free bus travel for under-16s and started a national conversation on adult social care.
Quick Wins and Rising Costs
In his first days in No10, Burnham announced VAT will be slashed from electricity bills from October, bus fares will be capped at £2, and pubs, social clubs, and live music venues will get a 20 per cent cut to business rates from April. However, the cost of living remains a top concern, with the economy being the top issue for UK adults, according to YouGov.
The Trade Union Congress (TUC) has called for a windfall tax on banks to help bring down energy bills for millions of households. HSBC fuelled the plea after announcing half-year profits surged by almost a quarter to £14.5 billion, following a bumper round of results from Lloyds Banking Group, Barclays, and NatWest, boosted by higher-for-longer interest rates.
Bank Profits and Social Tariff
The 'big four' have together made more than £29 billion in the space of six months. The TUC has asked the government to use the money to pay for a social tariff that, it claims, would bring down energy bills by up to £559 a year for those on low and middle incomes.
TUC General Secretary Paul Nowak said: “There is now a mountain of evidence to suggest that banks can easily afford to pay more tax. While higher interest rates have meant mortgage misery and bigger bills for the rest of us, the big banks have been rolling in it.
“Andy Burnham has rightly prioritised cost of living measures in his first days as prime minister, but as the war in Iran rumbles on energy prices will rise further - and the government will need to do more to protect households. That’s why it’s time to increase the tax on bank profits to cut bills. It’s common sense and it’s the right thing to do.”
The four big banks combined are estimated at this stage to make £55.3 billion profit for the whole year, up sharply from 2025, and equivalent to around £1,750 every second.
