Bankers and unions set for clash over possible Burnham tax raid on UK banks

Profits at banks including NatWest, Lloyds and Barclays have been buoyed in recent years by higher interest rates. Photograph: Vuk Valcic/ZUMA Press Wire/Shutterstock

Battle lines are being drawn between City bosses and trade unions over a possible tax raid on UK banks to help fund Andy Burnham’s package for struggling households this winter.

While bankers have warned the move would be “economic suicide”, union leaders have said Britain cannot afford to be “held hostage” by City lobbyists, given growing pressures to find money for defence and cost of living support.