Campaigners call for bank tax to fund cost of living support
Discussion
I see there are more calls for the government to tax banks more to help with the cost of living.
https://www.theguardian.com/business/2026/aug/04/u...
https://www.thisismoney.co.uk/money/markets/articl...
So, what do we think? Are the banks making 'excessive' profits and should they be taxed more? Over to you......
https://www.theguardian.com/business/2026/aug/04/u...
https://www.thisismoney.co.uk/money/markets/articl...
So, what do we think? Are the banks making 'excessive' profits and should they be taxed more? Over to you......
Edited by Ecosseven on Tuesday 4th August 15:19
Creating a culture of 'hey, they seem to be doing particularly well. GET THEM' doesn't foster the long term faith and investment that you need from a business to help everyone else grow.
There's a whole world elsewhere that'll be more pleased to have that investment.
I for one wouldn't put much effort in knowing I was constantly being scanned for another hit and run.
There's a whole world elsewhere that'll be more pleased to have that investment.
I for one wouldn't put much effort in knowing I was constantly being scanned for another hit and run.
ks from the usual suspects.This seems fair game
tfa said:
Another option is to limit a stealth subsidy paid to High Street banks, which costs taxpayers an estimated £20billion a year and is known as ‘reserve tiering’.
Under the little-known scheme, which critics say amounts to free money, lenders receive interest payments on reserves – piles of cash – they have to hold at the Bank of England.
These reserves – which amount to more than £500billion – were built up mainly as a result of the Bank of England’s quantitative easing – or money-printing – programme that was launched after the 2008 financial crisis to shore up the banking system.
Initially the banks made virtually no money on these reserves while interest rates were low.
However, they now receive 3.75 per cent interest a year on their cash piles after the Bank of England base rate soared.
They should peg this rate to the average savings rate they give to their customers, f.e. Lloyds seem to offer 0.75% to their current account holders. Under the little-known scheme, which critics say amounts to free money, lenders receive interest payments on reserves – piles of cash – they have to hold at the Bank of England.
These reserves – which amount to more than £500billion – were built up mainly as a result of the Bank of England’s quantitative easing – or money-printing – programme that was launched after the 2008 financial crisis to shore up the banking system.
Initially the banks made virtually no money on these reserves while interest rates were low.
However, they now receive 3.75 per cent interest a year on their cash piles after the Bank of England base rate soared.
.:ian:. said:
This seems fair game
No idea what tfa is. They are right that QE increased holding the rest is just rubbish.tfa said:
Another option is to limit a stealth subsidy paid to High Street banks, which costs taxpayers an estimated £20billion a year and is known as reserve tiering .
Under the little-known scheme, which critics say amounts to free money, lenders receive interest payments on reserves piles of cash they have to hold at the Bank of England.
These reserves which amount to more than £500billion were built up mainly as a result of the Bank of England s quantitative easing or money-printing programme that was launched after the 2008 financial crisis to shore up the banking system.
Initially the banks made virtually no money on these reserves while interest rates were low.
However, they now receive 3.75 per cent interest a year on their cash piles after the Bank of England base rate soared.
They should peg this rate to the average savings rate they give to their customers, f.e. Lloyds seem to offer 0.75% to their current account holders. Under the little-known scheme, which critics say amounts to free money, lenders receive interest payments on reserves piles of cash they have to hold at the Bank of England.
These reserves which amount to more than £500billion were built up mainly as a result of the Bank of England s quantitative easing or money-printing programme that was launched after the 2008 financial crisis to shore up the banking system.
Initially the banks made virtually no money on these reserves while interest rates were low.
However, they now receive 3.75 per cent interest a year on their cash piles after the Bank of England base rate soared.
1. The BOE lends those funds back to the market or buys bonds, which pay interest. If the BOE makes a loss it's just a spread.
2. The commercial banks borrow to support the deposits. Stop paying interest and the banks would now be losing. They would therefore invest as much as possible in other assets. The amount of reserves the banks had to keep with the BOE would be a cost they would pass on to customers.
wisbech said:
It would also mean that HSBC would split into a UK domestic bank and ROW bank. Why should they pay windfall tax on profits in China to the UK government?
Ditto Santander. But maybe that is what we want. Local shops for local people.
Regulations required the banks split there UK retail operations into separate companies some years ago.Ditto Santander. But maybe that is what we want. Local shops for local people.
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