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UK lenders post record half-year profits, renewing windfall tax calls
The big four reported total profits of £29.2bn for the first six months, with £13.7bn earmarked for dividends and share buybacks.
The Guardian reports that UK banks have posted sharply higher half-year profits, reigniting calls for a windfall tax as the country faces cost of living pressures and rising household bills. According to the outlet, HSBC, NatWest, Barclays, and Lloyds together reported £29.2bn in profits over the first six months of the year. Nearly half of that total, £13.7bn, was pledged to investors via dividends and share buybacks. Campaigners argue that higher taxation on bank earnings could generate £19bn from the big four, money they say could help offset Prime Minister Andy Burnham’s plans to reduce living costs and overhaul the UK’s social care system. The TUC’s general secretary Paul Nowak said banks can afford to pay more tax, framing it as a way for the government to demonstrate where it stands on the issue.
The article notes that Burnham had not made specific comments about a bank tax so far, but in June he said people needed support as costs rise while maintaining public finances responsibly. Nowak also linked the case for a tax increase to the expectation that the Iran war could push energy prices higher, requiring further protection for households.