Public purse losing £29m a week as a result of tax breaks for banks – TUC

The Government’s decision to cut the banking surcharge is costing the public purse £29 million a week, unions are claiming.

The TUC said its research estimated that the Treasury will lose at least £1.5 billion a year over the next four years as result of the change introduced by Rishi Sunak when he was chancellor.

The surcharge has been cut from 8% to 3%, allowing banks to make “huge profits” from rising interest rates, said the union organisation.

TUC general secretary Paul Nowak said: “At a time when our schools and hospitals are crumbling, Rishi Sunak has given a huge tax break to banks.

“Banks have enjoyed eye-watering profits over the last year and this tax cut means they have cashed in on soaring interest rates and families’ mortgage misery.

“The Prime Minister’s decision to reduce the surcharge has starved our public finances and our public services of much-needed funds at the worst possible time.”