Tory tax break for banks has cost UK public purse £6bn, says TUC

In evolving news, tUC analysis found cuts to the bank surcharge – an extra levy on lenders’ profits – from 8% to 3% led to £6bn in lost tax revenues over three years. TUC analysis found cuts to the bank surcharge – an extra levy on lenders’ profits – from 8% to 3% led to £6bn in lost tax revenues over three years. Photograph: Dan Kitwood/Getty ImagesView image in fullscreenTUC analysis found cuts to the bank surcharge – an extra levy on lenders’ profits – from 8% to 3% led to £6bn in lost tax revenues over three years. Photograph: Dan Kitwood/Getty ImagesBankingTory tax break for banks has cost UK public purse £6bn, says TUCExclusive: Chancellor urged to reverse Rishi Sunak’s tax surcharge cuts to claw back billions in lost revenue Business live – latest updates Kalyeena Makortoff Banking correspondentFri 9 Oct 2026 15.18 CESTLast modified on Fri 9 Oct 2026 15.53 CESTSharePrefer the Guardian on GoogleTax cuts for big banks have deprived the UK government of £6bn in revenues, according to campaigners, who are calling on the chancellor, John Healey, to increase taxes and force lenders to pay their “fair share” in the budget.

Key players involved

PAI Partners This development has significant implications for the industry, potentially influencing competitive dynamics, investment patterns, and strategic priorities across the sector. The then government agreed to slash the bank surcharge – an additional levy on lenders’ profits – from 8% to 3% that year.

Market Implications

Forward-Looking Indicators

Continued consolidation expected in the sector Increasing focus on digital transformation and innovation Growing importance of ESG considerations

Expert Commentary

Looking Ahead

For complete details on this development, refer to the original report from Guardian Business.

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