Fat cat bank bosses earn more in two days than typical workers do in one year as calls grow for windfall tax

Fat cat bank bosses earn more in two days than typical workers do in one year as calls grow for windfall tax EXCLUSIVE: The trade union body TUC says pay bonanza for bank bigwigs is another reason why Chancellor John Healey should slap a windfall tax on lenders in this week’s Budget Fat cat bosses running Britain’s big four banks raked in more in just two days than a typical worker earned all year. Trade union body the TUC claimed the pay bonanza — which saw chief executives pocket an average £8.9million each last year — was yet another reason why John Healey should slap a windfall tax on banks in this week’s Budget. Banks themselves appear resigned to being in the Chancellor’s crosshairs on Wednesday given a surge in profits on the back of higher-for-longer interest rates. Mr Healey is thought to be considering increasing a surcharge on banks’ profits from 3% to 8% — reversing a tax cut introduced by former Conservative chancellor Jeremy Hunt. The TUC has been amount those pressing for Mr Healey to target banks in the run-up to the Budget. It argues that the money raised from a windfall tax should be used to fund a cut in energy bills for households. Big four banks make £1bn a week in profits TUC General Secretary Paul Nowak said: “There is a mountain of evidence which shows banks can afford to pay more. While pay for those at the top of Britain’s banks spirals, the rest of the country is struggling to get by.” Accounts show Lloyds’ group chief executive Charlie Nunn’s pay and perks package rose from almost £6.2m to £7.4m last year, including a near £1.4m annual salary and £4.4m worth of bonuses. NatWest boss Paul Thwaite got almost £6.6m, up from just under £5m in 2024, boosted by £4m in bonuses. HSBC chief executive Georges Elhedery netted a package worth £6.6m. But that was eclipsed by CS Venkatakrishnan, boss of Barclays, who raked in more than £15m last year, on top of the £11.6m he earned in 2024. Last year’s bonanza included £12.7m in bonuses. The average across the four bigwigs was £8.9m — or 182 more than the mean average for a full-time UK worker last year, at £48,930. According to the TUC, the pay packages for the chief financial officers at the at the big four banks averaged £7.5m last year. It says that, since 2021 when interest rates started to increase, the big four banks have made £200billion in profit. It added that the big four banks have made more than a billion pounds a week so far this year. Mr Venkatakrishnan said last week that a tax a hike was “bearable”, as he revealed Barclays’ quarterly profits rose 12% to £2.3billion. 'Tax banks' profits to cut energy bills' Mr Nunn has reportedly has told investors the lender can withstand a rise in the bank surcharge to 4% or 5, without it having to change the guidance on how much profit it expects to make. Lloyds will publish it third quarter results on Thursday, the day after the Budget. Its profits jumped from £3.5bn to £4.3bn in the first six months of this year. NatWest releases results on Friday, having seen profits leap from almost £3.6bn to more than £4.3bn in the first half of this year. “These profits come off the back of spiralling bills and mortgage misery for households up and down the country,” said Mr Nowak. “That’s why taxing banks’ enormous profits to cut energy bills is a no brainer. Banks can well afford it and it’s the right thing to do.” According to the TUC, reversing the Tories’ cut in the bank surcharge would raise £9bn over the next four years, or £2.25bn a year. A 16% bank surcharge would generate £24bn over four years, it claimed, while it estimates a 35% surcharge would deliver a £60bn. John Healey to deliver Budget It is believed Mr Healey will, however, resists calls to impose too drastic as tax hike for fear it will dent banks' lending and hit the wider economy. Banks’ trade body UK Finance has argued City firms here are already more heavily taxed than those in New York, Amsterdam and Frankfurt. It said in its Budget submission: “An increase in bank-specific taxes would increase the differential between the UK and competing jurisdictions further, weakening the attractiveness of the UK as a place for banks to invest, deploy capital and locate jobs." Analysis by the think tank Tax Policy Associates, founded by leading expert Dan Neidle, found UK bank taxes are higher than in New York, Dublin or Singapore, but “broadly comparable to, and generally slightly lower than, those in the large European economies.” It also says banks’ profits have risen by less than campaigners claimed and added that any tax hike would likely impact customers, rather than just shareholders.