THE government must increase taxes on banks to bring down energy bills, the TUC said on Tuesday as the big four banks raked in £29 billion in combined profits in the first half of the year.

HSBC was the latest to announce soaring profits, revealing $10.1bn (£7.6bn) in pre-tax profits for the second quarter — up 60 per cent on the same period last year — bringing its half-year 2026 profits to $19.5bn (£14.5bn).

The announcement rounded off a profits bonanza for Britain’s high street banks, following those reported by Lloyds, Barclays and NatWest.

The TUC said there is “now a mountain of evidence” that banks can afford to pay more tax, and wants the money used to fund a social tariff cutting energy bills by up to £559 a year for those on low and middle incomes.

The union body is calling for an increase to the bank surcharge — currently an additional 3 per cent corporation tax on banking profits above £100 million, cut from 8 per cent by the Conservatives in 2023.

A 16 per cent surcharge would raise £24bn over four years, while a 35 per cent surcharge, matching the windfall tax imposed on energy companies, would raise £60bn.

Even the bare minimum of reversing the Tory cuts and setting it at 8 per cent would raise £9bn over four years, the TUC said.

TUC general secretary Paul Nowak said: “There is now a mountain of evidence to suggest that banks can easily afford to pay more tax.

“While higher interest rates have meant mortgage misery and bigger bills for the rest of us, the big banks have been rolling in it.

“Andy Burnham has rightly prioritised cost of living measures in his first days as prime minister, but as the war in Iran rumbles on energy prices will rise further — and the government will need to do more to protect households.

“That’s why it’s time to increase the tax on bank profits to cut bills. It’s common sense and it’s the right thing to do.”

HSBC’s group chief executive Georges Elhedery has tried to defend the bank’s enormous profits by claiming that “UK growth needs strong banks.”

The Treasury was contacted for comment.