Barclays 2023 profits: Positive Money response

London, 20 February 2024 – Positive Money responds to Barclays’ announcement today that its full year pre-tax profits for 2023 were £6.6 billion. This is down 6% from £7 billion in 2022.

Fran Boait, co-executive director at Positive Money, said:

“There is no bank less deserving of windfall profits than Barclays: domestically, it is ruthlessly cutting branches that millions depend on, and internationally, it’s financing companies involved in Israel’s brutal oppression of Palestinians.

“Whilst the government rejects a windfall tax on bank profits on the grounds that the sector is a huge employer, Barclays’ axing of hundreds of jobs right before Christmas shows banks are unscrupulous when it comes to cutting costs.

“Further delays are unacceptable; a windfall tax is the best short-term solution to redress the fact that these unearned profits are largely the result of higher interest rates, costs that are now being borne by the Treasury.”

Notes:

• Barclays’ Q4 profit announcement can be found here: https://home.barclays/investor-relations/reports-and-events/financial-results/

• In November 2023, Unite the Union called Barclays ‘disgraceful’ for announcing 900 UK job cuts in the lead-up to Christmas: https://www.unitetheunion.org/news-events/news/2023/november/unite-brands-mega-rich-barclays-disgraceful-as-it-announces-pre-christmas-job-losses

• Which? found Barclays closed 180 sites in 2023 and has already announced a further 90 closures for 2024: https://www.which.co.uk/news/article/barclays-bank-branch-closures-akhJO3I4TLk1

• The Palestine Solidarity Campaign has been calling for people to boycott Barclays because of its financing of companies enabling Israel’s attacks on Palestinians: https://palestinecampaign.org/campaigns/stop-arming-israel-3/

• When Caroline Lucas asked about a windfall tax on banks in September, Andrew Griffith (then Economic Secretary to the Treasury) simply said the sector provides millions of jobs: https://hansard.parliament.uk/Commons/2023-09-05/debates/32A0723A-3670-4D81-A008-63152C7A7257/details

• 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 is petitioning 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, Clive Lewis, Diane Abbott and Richard Burgon

• Polling commissioned by Positive Money in September 2023 found the majority of the public supports a windfall tax on banks: https://positivemoney.org/2023/09/uk-public-support-windfall-tax-on-banks-polling-shows/

About:

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