TUC says Tory bank tax cut has deprived UK Treasury of £6bn
The Trades Union Congress estimates that tax reductions for major banks cost the UK government about £6 billion, and it urges the chancellor to raise the bank surcharge in the upcoming budget.
The Trades Union Congress has quantified the fiscal impact of the 2023 bank surcharge cut, finding that the UK lost a total of £6 billion in tax receipts over three years. The reduction, which lowered the levy from 8% to 3%, was intended to balance a rise in corporation tax but coincided with a surge in bank earnings, as the four biggest lenders generated £200 billion in pre-tax profit across five years. The TUC’s analysis of HMRC data shows losses of £2.3 bn in 2023-24, £1.7 bn in 2024-25 and £2 bn in 2025-26.
It urges Chancellor John Healey to raise the surcharge at the 28 October budget, proposing rates that could bring in between £24 bn and £60 bn over four years, funds that could be used to ease the cost-of-living crisis championed by Prime Minister Andy Burnham. Banking executives, notably JP Morgan chief Jamie Dimon, have cautioned that higher taxes might curb investment and job creation, while the union cites a £25 bn bonus pool paid out last year as evidence banks can afford more. The Treasury has not responded to requests for comment.
Why it matters
The dispute over bank taxes could affect billions of pounds of public revenue and influence household energy costs in the UK.
How the sides frame it
LOW AGREEMENTLeft-leaning coverage emphasizes the Treasury’s lost revenue and calls for raising the bank surcharge to fund the cost-of-living crisis, while right-leaning coverage stresses industry leaders’ warning that a tax hike could push businesses and capital out of the UK.
LEFT
Highlights the £6 bn loss from the bank tax cut and urges a surcharge increase to support households.
RIGHT
Warns that raising bank taxes may harm investment, competitiveness and drive firms abroad.
The left emphasises
- £6 bn loss in tax receipts over three years
- Calls on Chancellor John Healey to raise the surcharge
- Funds could ease the cost-of-living crisis
The right emphasises
- Tax hike could drive businesses and capital out of the UK
- Industry bodies stress effects on investment and competitiveness
- Appeal to the Chancellor to avoid raising the bank tax rate
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