The UK reported a 20 per cent rise in bank surcharge receipts in the 2025-26 tax year, reaching £1.2bn, as profits surged. Bank levy receipts rose 9 per cent to £1.4bn. HM Revenue & Customs attributed the increase to higher sector profitability.

Major banks including Barclays, HSBC, Lloyds Banking Group, and Nat West generated over £200bn in pre-tax profits over five years, driven by high interest rates. Share prices are at their highest since the 2008-09 crisis. Banks are lobbying against a potential windfall tax in the upcoming Budget, warning it could deter investment.

Labour figures and unions have called for higher taxes on banks, citing their strong performance. In early 2026, major banks reported a combined £13bn in pre-tax profits, up 16 per cent. Former deputy PM Angela Rayner proposed raising the surcharge to 5 per cent.

The levy, introduced in 2011, currently has rates of 0.1 per cent and 0.05 per cent.