Barclays Profits Rise as UK Government Plans Bank Tax

Barclays reported a 12% increase in quarterly pre-tax profits to £2.3bn for the July to September period, up from £2.1bn the previous year. Chief Executive CS Venkatakrishnan announced a £500m share buyback, which brings the total amount returned to shareholders since January to £2.8bn. The bank's UK retail operations saw net interest income rise 6% to £2bn, a trend linked to rising interest rates driven by inflation expectations from the Iran war.

This financial performance comes as Chancellor John Healey prepares the October 28 budget. The government of Prime Minister Andy Burnham is expected to increase taxes on banks to fund cost-of-living support programs.

The Trades Union Congress has campaigned for this tax hike, arguing that windfall profits are underpinned by high mortgage costs for millions of citizens. General Secretary Paul Nowak stated that the big four banks have made £200bn in profit since 2021 and should pay a fairer share of tax to help the government support households and businesses through a looming energy bill crunch.