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UK chancellor weighs windfall levy on banks and oil firms
The UK’s four biggest lenders generated £200bn in pre-tax profits over the past five years, largely tied to higher interest rates, according to the report.
UK chancellor John Healey is reportedly considering a windfall tax on both banks and oil companies ahead of an autumn budget set for late October, as bank executives weigh the risk of new taxes targeting so-called bumper profits.
The report says the UK’s four largest lenders, HSBC, NatWest, Barclays, and Lloyds Banking Group, produced £200bn in pre-tax profits over the past five years, driven largely by rising interest rates.
Campaigners, including the Trades Union Congress and Positive Money, argue that higher banking taxes could help address rising household bills linked to the cost of living. The report notes that the pressure also ties into broader moves in Europe to raise money from lenders.
The Guardian highlights examples from the continent, including Spain’s 2022 plan to raise €3bn from banks over two years, as well as a 4.8% solidarity tax on banks once income surpassed €800m, while warning that such steps can spook investors and affect bank stock values.