Campaigners have called on prime minister Andy Burnham to impose a windfall tax on UK banks, which they say could raise billions this year to be spent on reducing the cost of living.

The not-for-profit organisation Positive Money, which aims to redesign the economic system to address inequality and sustainability, called for a 38 per cent levy on the profits of UK banks above £800 million. It said thiscould raise at least £18.9 billion in 2026.

It said the UK’s big four banks – Barclays, HSBC, Lloyds Banking Group, and NatWest Group – had made profits of £29.2 billion for the first six months of 2026 and were on track to make £52.8 billion by the end of the year.

In its analysis, Positive Money cited the example of the Spanish government’s windfall tax on bank earnings over €800 million which raised an additional €1.26 billion in its first year. It said the suggested rate of 38 per cent was in line with the Energy Profits Levy (EPL), introduced by the Conservative government in 2022, also known as the oil and gas windfall tax.

Positive Money added that the surcharge would exclusively target domestic retail banking to ensure banks are not incentivised to move commercial operations overseas, which would be damaging to the UK’s financial sector.

Sara Hall, co-executive director at Positive Money, said interest rate rises have not reduced inflation and have put consumers in a “lose-lose” situation where banks receive windfall profits at the expense of the general public.

“Previous governments have allowed the powerful banking lobby to persuade them against taxing these record-breaking profits in recent years, despite overwhelming public support for the policy.

“We’re calling on Andy Burnham to break with his predecessors by resisting the demands of City lobbyists and reclaiming these lost billions with a windfall tax on bank profits, the proceeds of which could be used to fund truly life-changing support for the households and businesses struggling to pay their bills right now.”

Recent analysis by the Trades Union Congress (TUC) found bank bonuses are at their highest level since the 2008 financial crisis, totalling £25 billion in the financial year ending March 2026.

The TUC cited this as proof banks can afford to pay more in tax and said a surcharge of 35 per cent, in line with the 2022 EPL rate, would raise £60 billion over the next four years.

Prominent voices in banking have already cautioned Burnham against imposing further levies on the sector, however. Jamie Dimon, the chief executive of JPMorgan Chase (JPMC), said there would be “consequences” if the UK government increases banking tax. Earlier in the year, Dimon told Bloomberg that JPMC could reconsider plans for its new £3 billion headquarters in Canary Wharf if the UK became “hostile to the banks”.

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