Barclays Profits Soar: Burnham Urged to Tax Banks More 2026

Barclays profits soared in the first half of 2024, prompting fresh calls for Andy Burnham to increase tax on UK banks. The bank's pre-tax profits jumped 31% to £3.3bn in Q2, driving half-year profits to £6.1bn, a 17% rise. This windfall has swelled the bonus pool to £1.3bn, up 30% from last year, and fueled demands for a tax raid on lenders.

Why Barclays' Profit Surge Sparks Tax Debate

The Trades Union Congress (TUC) argues that big banks like Barclays are profiting from high interest rates while households struggle. TUC General Secretary Paul Nowak said, "Big banks like Barclays are raking it in while working people and local businesses are struggling." He urged the new prime minister and chancellor to increase the bank surcharge and use the revenue to lower energy bills.

Barclays executives counter that UK banks already face a higher tax burden than foreign peers. According to UK Finance, UK banks pay an effective tax rate of 46.4% when including employment taxes and VAT, compared to 38.9% internationally.

Barclays' Bonus Pool and Shareholder Returns

The bonus pool increase reflects strong performance, but it may also trigger public backlash. Barclays also announced a £1bn share buy-back and £800m in dividends, rewarding shareholders handsomely.

Key Takeaways on Bank Tax and Profits

• Barclays' profits are booming due to higher interest rates, but this has increased mortgage costs for consumers.
• The TUC calls for a higher bank surcharge to fund cost-of-living relief.
• UK banks argue they are already taxed more than global peers.
• The bonus pool increase may fuel public anger and political pressure.

FAQ

As the debate intensifies, the government faces pressure to balance public sentiment with maintaining a competitive banking sector. The outcome could reshape UK tax policy.