Economy
UK Banks' Profits Spark Calls for Windfall Tax to Aid Burnham
UK banks' soaring profits have intensified calls for a windfall tax, with campaigners arguing a levy on the big four lenders could raise £19bn to help Prime Minister Andy Burnham ease the cost of living crisis.
HSBC, NatWest, Barclays and Lloyds reported combined half-year profits of £29.2bn, pledging £13.7bn to shareholders via dividends and buybacks. The TUC's Paul Nowak said banks can easily afford to pay more tax, while Positive Money urged Burnham to resist City lobbyists. Burnham has not commented specifically on a bank tax but said in June he would give Britain breathing space without risking public finances.
Bank executives have warned against tax hikes, with JP Morgan's Jamie Dimon saying his firm has already paid $10bn in extra taxes and would reconsider investments, and NatWest's Paul Thwaite arguing tax rises would harm lending and the economy. Barclays' Anna Cross stressed the banks' role in supporting growth. The debate echoes history: the coalition government imposed a bank levy in 2010, based on IMF proposals, to recoup billions from the largest banks after the 2008 crisis. "This is not a 'hard choice', said one campaigner, "but a necessary step to fund public services.
Source: Guardian Business
