Battle brewing as Burnham is urged to raise bank taxes

Battle lines are being drawn between City bosses and trade unions over a possible tax raid on UK banks to help fund Andy Burnham’s package for struggling households this winter.

- Kalyeena Makortoff Richard Partington

While bankers have claimed the move would be “economic suicide”, union leaders said Britain could not afford to be “held hostage” by City lobbyists, given growing pressures to find money for defence and cost of living support.

In a speech on Monday, Burnham said he recognised cash-strapped households “need a bit extra now to help with rising costs”, reigniting a debate about a possible windfall tax on banks. “I will do my very best to deliver it and, while not taking risks with the public finances, will seek to give Britain some breathing space as soon as I can,” he said.

Profits at banks including NatWest, Lloyds and Barclays have been buoyed in recent years by higher interest rates, sending their share prices surging.

Paul Nowak, the leader of the Trades Union Congress (TUC), said the new Labour MP for Makerfield, who is widely expected to replace Keir Starmer as prime minister, should ignore “vested interests” and urged Burnham to plot a radical change in course.