Politics · United Kingdom · 2 hrs ago
Scottish Labour leader urges higher taxes on big banks
Scottish Labour leader Michael Marra wants big banks to pay more tax to help fund public services and ease pressure on households.
He says banks have made large profits while mortgage rates have risen faster than the Bank of England’s base rate and savings rates.
The banks’ current corporation tax surcharge is 3%, and one option under discussion is raising it to 8%.
Chancellor John Healey is due to set out his Budget on Wednesday, but the Treasury has not confirmed whether it will include a bank tax increase.
Barclays has reported a 12% rise in third-quarter pre-tax profits, while other major banks are due to publish results next week.
A higher surcharge could reduce bank earnings, and analysts say UK lenders might become less competitive; domestic banks Lloyds and NatWest could be most affected.
Marra is due to meet Healey this week, and the Budget will show whether the Chancellor acts on the proposal.
Scottish Labour leader Michael Marra has urged Chancellor John Healey to raise taxes on big banks ahead of his first Budget.
Marra said banks should contribute more after reporting strong profits while households face pressure on living costs.
He cited Barclays’ 12% rise in third-quarter profits and said mortgage rates had outpaced base and savings rates.
A possible route is increasing the banks’ current 3% corporation tax surcharge, though Marra has not specified a preferred measure.
Bank executives and an analyst have warned that higher taxes could affect earnings and competitiveness, while Barclays’ chief executive called a tax rise bearable.
- Who
- Scottish Labour leader Michael Marra is urging Chancellor John Healey to raise taxes on big banks.
- What
- Marra wants banks to pay more tax. The possible measures include increasing the current 3% corporation tax surcharge.
- When
- Ahead of Healey’s first Budget, due on Wednesday, October 28, 2026.
- Where
- The proposal concerns big banks in Britain. Marra is due to meet Healey and Energy Secretary Miatta Fahnbulleh this week.
- Why
- Marra says banks have made strong profits while people struggle with living costs, and argues they should help fund public services and support measures.
Scottish Labour leader Michael Marra
Banking industry and tax-rise critics
Tax rationale
Scottish Labour leader Michael Marra
Marra says banks should contribute more after strong profits, particularly as households struggle with costs.
Banking industry and tax-rise critics
Richard Hunter warned that a higher surcharge could reduce bank earnings and weaken global competitiveness.
Effect on Barclays
Scottish Labour leader Michael Marra
Marra pointed to mortgage rates outstripping base and savings rates as a driver of bank profits.
Banking industry and tax-rise critics
Barclays chief executive CS Venkatakrishnan said a tax rise would be bearable for the bank.
The Evening Standard reported that major UK banks were due to report third-quarter results the following week as a possible tax rise was under consideration.
The Independent reported Marra’s call for higher taxes on big banks ahead of Healey’s Budget.
Healey is due to deliver his first Budget.
- Proposed current surcharge
- 3% corporation tax surcharge on banks
- Barclays third-quarter profit growth
- 12% year on year
- Barclays pre-tax profit
- £2.3 billion
- Barclays planned staff cuts
- 5,000 this year, about 5% of its workforce
- Possible surcharge increase
- From 3% to 8%
3 sources
What people are saying
Labour governments should make progressive choices on tax
When people are struggling to afford to turn up the heating, we should ask big business to do their bit – especially when they are seeing windfall profits.
We are already a bank which makes a lot of our money outside the UK so this is not a question of a financial hit to us – it’s bearable.
reduce earnings by a possible 6%