Barclays has delivered strong financial results, sparking fresh calls for the UK government to impose higher taxes on major banks. The financial institution reported a 31% increase in second-quarter pre-tax profit, reaching £3.3 billion compared to the previous year. This performance boosted its first-half profit to £6.1 billion, a 17% rise from earlier figures.
In response to these robust results, the Trades Union Congress (TUC) has urged Prime Minister Andy Burnham’s administration to consider raising taxes on banks. The TUC argues that the substantial profits indicate that banks are in a position to contribute more to alleviating the ongoing cost-of-living crisis affecting many in the UK.
Barclays has also announced enhancements to its shareholder rewards and employee compensation, with a nearly 30% increase in its half-year bonus pool, now totaling £1.3 billion. Additionally, the bank unveiled plans for £1 billion in share buybacks and £800 million earmarked for shareholder dividends.
In response to the calls for increased taxation, Barclays defended its financial practices, emphasizing that UK banks already face higher tax obligations compared to numerous international counterparts. Executives at the bank highlighted that the rise in the bonus pool is a reflection of improved earnings. They also underscored the importance of a healthy banking sector, which they argue is crucial for facilitating lending, fostering investment, and driving economic growth.