Burnham urged to increase tax on banks as Barclays’ profits soar

In the wake of a 30% increase in its half-year bonus pool, Barclays has come under fire with renewed calls for a significant tax hike on the UK's banks. Fresh corporate filings revealed the bank set aside £1.3bn for bonuses, an increase from £1bn last year, which will accumulate over the second half of the year, possibly leading to even more generous payouts for top-performing bankers in the coming months.

The figures follow a notable surge in pre-tax profits for the second quarter, with Barclays reporting £3.3bn in the three months between April and June, a 31% jump on the same period last year. This contributed to a rise in half-year profits to £6.1bn, a 17% increase over the same period. The bank's impressive results have also allowed for new payouts to shareholders, including a £1bn share buy-back and £800m in dividends.

As the Trades Union Congress (TUC) emphasizes the need for further support in tackling the cost of living crisis, it is calling on the new prime minister and chancellor to increase the bank surcharge and tax banks more heavily to bring down energy bills. "Big banks like Barclays are raking it in while working people and local businesses are struggling," said TUC general secretary Paul Nowak, adding that the strong profits demonstrate banks can easily afford to pay more in taxes.

Barclays, however, maintains it is taxed significantly higher than its foreign peers and emphasizes the importance of its financial contributions to the UK economy.