Greens Push 38% Windfall Tax on Big Banks to Aid Small Businesses

The Green Party of England and Wales is calling for a 38% windfall tax on big banks' profits to support small and medium-sized businesses. The tax would be applied to UK profits exceeding £800m, with the estimated revenue being £19bn annually. According to leader Zack Polanski, this money will serve as a 'lifeline' for over a million SMEs, reducing their National Insurance bills by up to £10,500 through doubling the Employment Allowance.

Polanski claims that large banks are profiteering from high interest rates set by the Bank of England, which are meant to curb inflation. He suggests that instead of benefiting from these rates, banks should contribute more to the economy. The Green Party's proposal has been met with a response from Labour, which states it is already working on revitalizing Britain's high streets through measures such as reduced business rates and devolved power for local businesses.

Positive Money, a campaign group that floated this idea last year, estimates that £19bn could be raised annually. When similar proposals were made previously, UK Finance countered that banks already pay both a corporation tax surcharge and a bank levy.