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UK bank windfall tax campaign grows after HSBC profits jump 60%
Campaigners say a levy targeting excess UK bank revenues could raise up to £19bn, arguing it would help fund cost of living measures tied to Andy Burnham’s agenda.
Campaigners are again calling for a windfall tax on UK banks after HSBC posted strong results, including profits that rose 60% year on year in the three months to the end of June.
The Guardian Business reports HSBC generated $10.1bn, or £7.5bn, in profits in the second quarter, with support coming from wealth management and insurance fees and higher interest rates that allow more revenue on loans and mortgages.
The article says the push is being led by groups including Positive Money and the Trades Union Congress, which argue that profits from the four largest lenders, HSBC, NatWest, Barclays, and Lloyds, totaled £29.2bn over the first six months of the year and should draw fresh policy scrutiny.
Positive Money estimates that bank bosses have already pledged nearly half of their profits, £13.7bn, to shareholders via dividends and share buybacks, and it argues a Spain-style approach could target UK revenues above £800m with a 38% tax to raise up to £19bn. The group links the potential revenue to specific items it says would be covered many times over, including Andy Burnham’s VAT cut from electricity bills and a cap on bus fares, among others, and says the government could fund the plan ahead of the October budget.