TUC demands bank tax hike as Barclays boosts bonus pool by 30 per cent
Barclays reports £6.1bn half-year profit and £1.3bn bonus pot, intensifying pressure on the new prime minister and chancellor to address the cost of living crisis.
Barclays has announced a nearly 30 per cent increase in its banker bonus pool for the first half of 2026, reaching £1.3bn, following a significant rise in quarterly profits. The financial institution reported second-quarter pre-tax profits of £3.3bn, a 31 per cent increase on the previous year, bringing its half-year total to £6.1bn, up 17 per cent year-on-year.
The strong financial performance also enabled the bank to announce a £1bn share buy-back and £800m in dividends for shareholders. The updated bonus pool, which includes both annual and deferred bonuses, represents a substantial increase from the £1bn allocated for the same period last year. Final payouts for these bonuses are expected to be determined by the end of February 2027.
The announcement has intensified calls from the Trades Union Congress (TUC) for the UK government to impose a higher tax on major lenders. TUC general secretary Paul Nowak argued that the bank’s results demonstrate an ability to contribute more to public finances, particularly as the new prime minister and chancellor consider their fiscal priorities.
Nowak described the profits as a “bonanza” and highlighted the disparity between the banking sector’s gains and the struggles faced by households. He noted that while high interest rates have been a “boon” for banks, they have caused “mortgage misery” and increased bills for working people and local businesses.
The union leader urged the government to increase the bank surcharge to help fund spending plans aimed at reducing energy bills and tackling the cost of living crisis. Nowak stated that Barclays’ profits show banks can “easily afford to pay more tax,” framing the issue as a choice for the government to demonstrate whose side it supports during the economic downturn.
