Tax the banks to help workers, TUC tells Healey

TAX the banks to cut costs for working people today, Chancellor John Healey was told by the TUC yesterday. TUC general secretary Paul Nowak made the call as bank profits soared and Mr Healey prepared to unveil his first package of Budget measures. It is believed the Chancellor will announce a windfall tax on the banks, while backing down on commitments to boost the minimum wage for younger workers. Ministers also unveiled an eve-of-Budget package of small changes to help with the cost of living, continuing a theme Prime Minister Andy Burnham has committed to since coming to office. The anticipated windfall tax announcement follows big bank HSBC revealing a 32 per cent leap in profits in the third quarter to nearly $9.6 billion (£7.14bn) — $29.15bn for the year to date. Mr Nowak said: “Some in the finance lobby have tried every which way to stop tax rises in the Budget. But these results make it blatantly obvious banks can afford to contribute more. “It’s not just HSBC. Barclays announced bumper profits last week too. And Britain’s big four banks have made more than £200bn in profit over the last five years. “With Trump and Putin’s illegal wars rumbling on, working people have another cold, hard winter ahead. Households and businesses are going to need more support — and it’s time for the Chancellor to make the banks pay a fairer share.” The TUC is calling for the government to increase the profits surcharge to 35 per cent, which would raise up to £60bn over the next four years. The money could be used to bring down energy bills by up to £559 a year for those on low and middle incomes, it argues. Yesterday the government revealed five “everyday fixes” to help beleaguered working people, including making higher tax-free mileage rates for nurses, care workers and self-employed builders permanent. Ministers also extended parental pay to self-employed fathers who previously missed out, cut tariffs on more than 100 food products, including baked beans, chocolate and gherkins, and also rolled out hundreds more Post Office drop boxes to make it easier to send parcels. The government further ended the carer’s allowance cliff-edge, which has seen unpaid carers lose their entire allowance for earning just a penny over the weekly earnings limit. Mr Burnham said: “We are taking on the big challenges facing the country, but that doesn’t mean losing sight of the everyday problems that cost people money or simply aren’t fair. These changes will make life a little easier and put more money back in your pocket.” Unison general secretary Andrea Egan welcomed the new measures but urged the government to do more. She said: “These are welcome measures, especially making the uplift to mileage rates permanent, something Unison has campaigned hard for. The government’s relentless focus on the cost of living is commendable. “But the cost of essentials, including food and fuel, is going to keep soaring, meaning breathing space will quickly be closed down. “That’s why we need to see a bolder approach, based on making the wealthy pay their fair share and improving the lives of working-class communities in a more enduring way.” Mr Healey is expected to announce an increase to the minimum wage today but will slow the pace at which the rate for workers aged under 21 is equalised with the main rate, something Labour committed to in its election manifesto. Business Secretary Jonathan Reynolds said: “The manifesto pledge on equalisation still applies, but we were always clear it could happen over time. “It is a balance of making sure the pressures on the labour market are taken into account.” He suggested that ministers have capitulated to fears that young workers could be priced out of work. Green Party co-deputy leader Mothin Ali condemned the climbdown: “Anyone doing a day’s work needs to be paid the same rate for the same job. “A young person’s rent and food bill is no less because they are young, so they need to receive the same wage. Healey and Burnham are now breaking a manifesto pledge to young people that even Starmer managed to keep.” Unions call for biggest banks to face additional taxes Trade unions call for windfall tax hike to fund social energy tariff to public’s energy bills