That this House notes that the combined annual profits of the four largest UK banks have doubled to £48 billion in the five years to 2025, mostly due to a tax glitch which gifted an unanticipated windfall of £86 billion since 2022; further notes that a fair and pragmatic windfall tax would raise approximately £19 billion per annum, which equates to the estimated costs of the PM’s proposed National Care Service, or could fund both a £90 cut in a typical household’s annual fuel bill, if used to replace the artificial impact of the so-called renewable levy, and a 5% VAT cut for hospitality businesses; also notes that tech giants pay only 2% on their declared UK profits and that an increase to just 10% would raise a further £4 billion per annum; and calls on the Chancellor of the Exchequer to carefully consider these factors, along with those contained in EDM 939 and EDM 940 as part of a comprehensive and equitable approach to fiscal policy in the forthcoming Budget, acknowledging the collective measures would help the government combat widening inequality.
