Andy Burnham Seeks Household Support While Bank Tax Debate Revives Competitiveness Concerns

Andy Burnham said Monday he would seek extra support for cash-strapped households facing rising costs while avoiding risks to public finances. The new Labour MP for Makerfield, widely expected to replace Keir Starmer as prime minister, made the remarks in a speech that revived debate over a possible windfall tax on banks.

The Trades Union Congress said reversing a Conservative-era cut to the bank surcharge could raise £9bn over four years.

Paul Nowak, the TUC leader, urged Burnham to ignore vested interests, noting that one in five people are skipping meals. NatWest reported £7.7bn in pre-tax profits for 2025, up 24% from the prior year and its highest since the 2008 bailout. Lloyds Banking Group posted £6.7bn, a 12% increase, while Barclays recorded £9.1bn, up 13%, and plans £15bn in shareholder payouts from 2026 to 2028.

Bank executives told The Guardian that a new tax would amount to economic suicide and leave London with an uncompetitive regime compared with Frankfurt and New York. UK Finance data show banks face an effective rate of 46.4% once employment taxes and VAT are included, versus 38.9% in Frankfurt and 27.9% in New York.

Jim O’Neill, a former Goldman Sachs chief economist advising Burnham, told Sky News on Tuesday that further tax increases on business should be avoided.

JP Morgan announced plans last November for a £3bn UK headquarters in Canary Wharf after the prior budget spared banks additional levies, though chief executive Jamie Dimon has warned the project could be scrapped if the next government proves hostile.