Reinstate windfall tax on banks after surge in profits, TUC urges
An increased windfall tax should be imposed on the UK’s largest banks according to trade union leaders, after the big four lenders reported almost £14bn in first-quarter profits, partly fuelled by market turbulence caused by the Iran war.The Trades Union Congress (TUC) renewed its call for an increase in the current bank surcharge, which was reduced from 8% to 3% of profits above £100m by the Conservative government in 2023, as banks benefit from the high interest rate environment.The Bank of England held interest rates at 3.75% last week, with markets pricing in up to two increases by the end of this year.The average two-year fixed mortgage rate was 5.
77% on Tuesday according to Moneyfacts, compared with 4,83% before the start of the conflict in the Middle East,Over the past week, the UK’s big four banks – Barclays, HSBC, Lloyds and NatWest – reported combined profits of £13,8bn for the first quarter,“Getting banks to pay more tax on their profits is plain common sense when they’re raking in billions and the rest of the country is struggling to get by,” said Paul Nowak, general secretary of the TUC.
“With Donald Trump’s war abroad unleashing economic chaos at home, it’s only right that banks’ bumper profits are taxed fairly and used to shield households and firms from the damaging impacts of the war.”During a results call last week with the media, William Chalmers, chief financial officer at Lloyds Banking Group, was asked whether banks were “profiteering” from the Iran war.The FTSE 100 group, whose brands include Lloyds Bank, Halifax and Bank of Scotland, reported a 33% increase in year-on-year profits to £2bn in the first quarter.“Banks have had many years of very low margins, of low profitability in the context of a low-rate environment,” said Chalmers.“The sector always expected a gradual increase in the profitability of banks when rates rise.
That is the way the financial services industry works,”The TUC estimates that returning the bank surcharge back to the 8% level it was at three years ago, what it calls the “bare minimum”, would raise £9bn over four years,Doubling that to 16% would deliver £24bn over four years,The big four banks made profits of almost £46bn last year, resulting in bumper annual pay packets for bosses,“After the Tories cut the bank surcharge tax, banks enjoyed a profits bonanza because of high interest rates,” said Nowak.
“Now they could be set to make even more if interest rates remain high for longer.“The last economic shock caused by [Vladimir] Putin’s illegal invasion in Ukraine led to a bumper payday for banks at the expense of mortgage payers – we can’t allow the same thing to happen again.”Last year, the IPPR thinktank argued for a new bank tax to be introduced by chancellor Rachel Reeves in the November budget, a proposal that the industry managed to see off after intense lobbying.
MPs demand Reform suspend candidate over claims he celebrated rape of Sikh women
Labour MPs have called for a Reform UK election candidate in Essex to be suspended after he allegedly celebrated the rape of two Sikh women in the Midlands.A joint investigation by the Mirror and the anti-racism campaign group Hope Not Hate alleged Stuart Prior, who is standing for Reform in Rayleigh West (for Essex county council) as well as Sweyne Park and Grange (for Rochford district council), had made a string of racist comments on social media in the past few months. This included declaring white people the “master race” and calling Muslim people “rats”.Zarah Sultana, the former Labour MP and co-founder of Your Party, in a post on X in October, highlighted the rapes of two Sikh and Punjabi women in Walsall and Oldbury and said: “These horrifying attacks show how racism and misogyny feed each other – fuelled by the rise of fascism and hate.” In response, Prior, 54, is alleged to have said: “Good
Stop plotting to oust Keir Starmer, ex-deputy Labour leader urges MPs
Labour MPs have been urged to stop plotting to remove Keir Starmer by Tom Watson, who as a junior minister spearheaded the last attempted coup against a Labour prime minister, when Tony Blair faced a revolt in 2006.Watson’s warning came as Steve Reed, the housing and communities secretary, and a key Starmer loyalist, said Labour would risk “annihilation” if it decided to try to change leaders.But with results for Labour expected to be particularly grim in Thursday’s elections for the Scottish and Welsh parliaments and English councils, senior party figures have told the Guardian that activists were being repeatedly told that the prime minister was the problem, rather than the party.“They don’t hate Labour, they hate Keir, as unfair as that is, and I do think it is massively unfair,” one said.There are nonetheless few expectations of a challenge soon after the elections, with expected challengers including Andy Burnham, Angela Rayner and Wes Streeting locked in what one cabinet minister called a “Mexican standoff”, with no one ready to move first
Farage’s partner refuses to confirm how she paid for house in his constituency
Nigel Farage’s partner, Laure Ferrari, has refused to confirm how she paid for a house in the Reform leader and MP’s constituency of Clacton, adding “there’s more than one way to pay for a house”.In an interview with French publication Le Monde, Ferrari was questioned over revelations in the Guardian that she had purchased a house in her name in Clacton after Farage had claimed to be the buyer.Farage initially said the arrangement was for “security” reasons. Some months later, he told reporters that Ferrari came from “a very wealthy French family and can afford it” – although a subsequent BBC investigation raised further questions about the size of her family’s alleged wealth.Quizzed by Le Monde on the issue, the publication said she “dodged” the question
‘Close to zero impact’: US study casts doubt on effect of phone ban in schools
Strict bans on mobile phones in schools have “close to zero” impact on student learning and show no evidence of improvements in attendance or online bullying, a study has found.Researchers at US universities including Stanford and Duke looked at nearly 1,800 US schools where students’ phones were kept in locked pouches and found little or no differences in outcomes compared with similar schools without strict bans.The report concluded that among schools instituting a ban: “For academic achievement, average effects on test scores are consistently close to zero.”The results will come as a disappointment to teaching unions and campaigners in England who backed the government’s recent move to restrict the use of mobile phones in schools. A ban is likely to come into force next year
Badenoch defends seeking a ban on pro-Palestine marches but not Tommy Robinson ones – as it happened
Kemi Badenoch also used her Today interview to defend her argument that pro-Palestine marches should be banned because they platform antisemitism, but that marches organised by the far-right activist Tommy Robinson should be allowed.When it was put to Badenoch that the Robinson marches were a platform for anti-Muslim hate, Badenoch said that the marches were “different”, and that two Jewish men were killed at Heaton Park synagogue last year and that another two Jewish men were almost killed in Golders Green last week.When it was put to her that Muslims might feel threatened by some of the things said at a Robinson event, she insisted that the two sorts of marches were “not the same”.She went on:double quotation markCriticism of religion is allowed in this country. We mustn’t mix the two things
Farage deploys the rottweiler to distract from awkward £5m gift story | John Crace
It’s a classic from the Donald Trump playbook: everything’s been going a bit tits up, so you create a distraction. Get everyone looking in the wrong direction. Last week was the worst in months for Reform. First the party was pegged back in the opinion polls, then the Guardian revealed Nigel Farage had been given a £5m handout by Christopher Harborne, a Thai-based crypto dealer. A donation that Nige had never thought to declare
Man charged over bomb hoax after Peter Kay show evacuated
Guy Montgomery: ‘One fan took us back to his house and showed us all his guns’
‘We have to mock the site’s insanity’: comedian Tim Heidecker on the allure of becoming Infowars’ new boss
Prince’s death made me upend my life and move to his home town
The Devil Wears Prada 2 to Lenny Henry: your complete entertainment guide to the week ahead
Peter Kay show stopped and 19-year-old in custody after ‘suspicious bag’ found