Chancellor John Healey has announced a tax on banks' bumper profits to help cut household bills, a move welcomed by the TUC as 'common sense prevailed'. The measure will put £100 into the bank accounts of 20 million households to help with energy costs.
£100 relief for households
The Chancellor's announcement follows years of campaigning from trade unions, with the support of the Daily Mirror. The result is a £100 payment to 20 million households, which the TUC says will offer 'real breathing space' for families across the country.
The move comes at a time of global economic uncertainty, with the TUC noting that households are facing a long and hard winter. The Chancellor was 'absolutely right to act', according to the union body.
Bank profits under scrutiny
Taxing banks to fund support was described as a 'no brainer', given that banks have seen profits soar while households have struggled with mortgage costs. Since 2021, when interest rates began to rise, the big banks have made £200 billion in profit, and this year alone they have been making a billion a week.
The TUC also pointed to top bankers' pay, noting that it takes just two days for the top bosses at Britain's biggest banks to earn what the average worker makes in a year. Last year, the City handed out record bonuses of £25 billion.
Further action needed
While the tax on banks is welcome, the TUC argues more is needed to deliver the 'circuit breaker' Britain requires. This includes boosting support to bring down manufacturers' energy costs, investing in public services, and rebalancing the tax system to reward work rather than wealth.
The TUC's General Secretary, Paul Nowak, writing for The Mirror, said the Prime Minister and Chancellor have provided some much-needed relief, but more will be needed in the years ahead. He also suggested the Chancellor should be prepared to extend and increase the tax on excess bank profits in future years.
