Reinstate windfall tax on banks after surge in profits, TUC urges

The TUC says returning the bank surcharge to the 8% level of 2022 would raise £9bn over four years, while doubling it to 16% would bring in £24bn. Photograph: Network Photographers/Alamy

An increased windfall tax should be imposed on the UK’s largest banks according to trade union leaders, after the big four lenders reported almost £14bn in first-quarter profits, partly fuelled by market turbulence caused by the Iran war.

The Trades Union Congress (TUC) renewed its call for an increase in the current bank surcharge, which was reduced from 8% to 3% of profits above £100m by the Conservative government in 2023, as banks benefit from the high interest rate environment.