Bank Profits: Windfall Tax

Opened the debate

The MP calls for a windfall tax on banks, citing their super-profits during the cost of living crisis and the need to fund public services. He criticises the Tory government's economic policies and highlights income inequality, poverty, food insecurity, and fuel poverty. Richard Burgon also points out the closure of high-street bank branches and the lack of support for local communities by banks. He proposes a windfall tax based on Spain’s example and argues it would be popular among the public.

Government Response

Minister Bim Afolami congratulates Richard Burgon on his debate and acknowledges the importance of financial services to the UK economy. He highlights that the banking sector is well-capitalised, competitive, and supports jobs throughout the country. The Minister outlines measures taken by the Government since 2010 to ensure banks make a fair tax contribution, including the introduction of the bank levy and surcharge. However, he argues against introducing a windfall tax, stating it would risk the health and competitiveness of the banking sector, putting existing jobs at risk and damaging future job creation prospects. The Minister emphasises that the current approach generates significant tax revenue and supports citizens' needs.