London, 26 July 2023 – Responding to announcements from Lloyds Bank and Santander this morning that their pre-tax profits for the first-half of 2023 rose by 23% and 18%, respectively, Fran Boait, co-executive director of Positive Money said:
“Lloyds and Santander’s latest results are a slap in the face of the public, who are footing the bill for their bumper profits.
“The context changes, but if the past 15 years have taught us anything, it’s that the same players always come out on top. Leaving banks to bask in bonuses and buybacks unchecked sends one message: the City always wins.
“Support is growing for a windfall tax on these unearned profits: we’ve heard politicians from the backbenches throw their weight behind the idea, now we need those from within government to do the same.”
- Higher interest rates mean that the Bank of England is expected to pay an estimated £75bn of interest on banks’ risk free reserves over 2023 and 2024, with a total of around £150bn due to be paid out between 2022 and 2028. For more information see: http://positivemoney.org/wp-content/uploads/Bank-windfall-tax-briefing-2.pdf
- Positive Money has called for this windfall to be taxed: https://actionnetwork.org/petitions/tell-hunt-to-tax-the-banks/
- Calls for a windfall tax on banks have been echoed by MPs, including Angela Eagle, John McDonnell, and Richard Burgon
- Santander’s profit announcement can be found here: https://www.santander.com/en/press-room/press-releases/2023/07/q2-2023-santander-bank-results
- Lloyds Bank’s Q2 profit announcement can be found here: https://www.lloydsbankinggroup.com/investors.html
Positive Money campaigns for a money and banking system which supports a fair, democratic and sustainable economy. Set up in the aftermath of the financial crisis, Positive Money is a not-for-profit company funded by charitable trusts and foundations, as well as small donations from its network of over 65,000 supporters. www.positivemoney.org