TUC Urges Higher Bank Taxes to Recover £6 Billion

The Trades Union Congress reports that tax cuts for major banks introduced by former Chancellor Rishi Sunak in 2023 have cost the United Kingdom public purse £6 billion in lost revenues over three years. The union body is now urging Chancellor John Healey to increase the bank surcharge in the October 28 budget to help Prime Minister Andy Burnham address the cost of living crisis.

The TUC suggests that raising the surcharge to 35% could generate £60 billion over four years. The organization argues that the previous tax breaks for banks have placed an undue burden on the public and that financial institutions must pay their fair share.

Banking industry representatives have pushed back against the proposal. UK Finance and JP Morgan CEO Jamie Dimon warned that further tax increases would undermine the competitiveness of the United Kingdom and discourage investment. Dimon specifically noted that such levies could risk jobs and might lead to the cancellation of a proposed £3 billion London headquarters.