Bank battle: history suggests Burnham faces fight if he opts for windfall tax
📰 source: theguardian_business · 💼 business
uk's four biggest banks – hsbc, natwest, barclays and lloyds – reported £29.2bn in combined half-year profits, with £13.7bn going to shareholders through dividends and buybacks. the bumper numbers have reignited calls for a windfall tax, with campaigners saying it could raise £19bn to fund the new prime minister andy burnham's plans.
burnham has not commented on a bank tax, but tuc general secretary paul nowak and group positive money are pushing hard. bank bosses are pushing back: jamie dimon said jpmorgan might reconsider its £3bn canary wharf hq, natwest's paul thwaite warned of harm to lending, and barclays' anna cross stressed banks' support for growth. history shows banks have fought such levies before – george osborne's bank levy was scaled back after hsbc threatened to leave the uk. total tax rates for uk banks run about 45.8%, versus 38.6% in frankfurt and 27.9% in new york.
why it matters: a windfall tax on uk banks would pressure profits and shareholder payouts, potentially weighing on bank stocks and lending capacity.
source: theguardian_business
sentiment: -0.20 · impact: 0.50