TUC urges reversal of bank surcharge, says it could raise £9bn over four years

The Trades Union Congress (TUC) has urged the government to scrap the recent bank surcharge, arguing that the levy would generate around £9 billion in additional revenue over the next four years if left in place. The TUC’s position, outlined in a statement released on Monday, contends that the surcharge—imposed on the profits of major UK banks as part of the Treasury’s fiscal strategy—offers limited economic benefit while placing an undue burden on the financial sector.

Introduced last year as a temporary measure to help fund public services and reduce the fiscal deficit, the surcharge applies a 0.5 percent charge on banks’ net profits exceeding £10 billion. The TUC’s analysis, based on current profit forecasts and the projected duration of the levy, estimates the total contribution to the exchequer at £9 billion by 2028. The union argues that reversing the charge would improve banks’ capacity to lend to households and businesses, thereby supporting broader economic recovery, while suggesting alternative revenue sources could replace the shortfall. The government has not yet responded to the TUC’s call for reversal.