Scotland's Labour leader Michael Marra has urged the Chancellor to raise taxes on major banks, joining calls from the TUC for large firms to contribute more to public finances. Profits at leading banks have risen sharply, with Barclays reporting a 12% increase in the third quarter of this year. Mr Marra attributed the surge to mortgage rates significantly outpacing the base rate while savings rates have lagged behind, allowing banks to widen their margins.
The biggest banks earned around £15 billion in profits during the first six months of 2026, according to Mr Marra's figures. He described the financial services sector as strong and internationally competitive, arguing that such windfall gains justify a tax increase. "When people are struggling to afford to turn up the heating, we should ask big business to do their bit," Mr Marra said. "The banks paying their fair share would be a good place to start to fund measures that give people a bit of breathing space."
Mr Marra is scheduled to meet the Chancellor and Energy Secretary Miatta Fahnbulleh this week to discuss the proposal. The Scottish Labour leader signalled flexibility on how a bank tax increase could be implemented, with raising the current 3% corporation tax surcharge on banks mentioned as a potential route. However, the Treasury declined to comment on the suggestion ahead of the Chancellor's autumn statement on Wednesday. A Treasury spokesman said: "Decisions on tax are a matter for the Chancellor to set out at fiscal events, rather than routinely commenting on rumour, speculation or proposals."
The calls reflect broader Labour positioning on taxation and public services funding. Mr Marra highlighted that the government has already implemented taxes on private jets, private schools and private equity to raise revenue for the NHS and other public services. His intervention demonstrates Scottish Labour's emphasis on progressive tax policies that shift costs to wealthier individuals and profitable businesses during a period when many households face financial strain.