Barclays increases bonus pool by nearly 30% as calls grow for UK bank tax

TUC leader says lender’s ‘bonanza’ quarterly profits of £3.3bn mean it ‘can easily afford to pay more tax’

Barclays has increased its banker bonus pool by nearly 30% after a rise in second-quarter profits that has fuelled calls for a tax raid on UK lenders to help fund Andy Burnham’s spending plans .

Fresh corporate filings released on Tuesday showed the bank put £1.3bn towards its bonus pool for the first half of the year. That figure, which includes annual and deferred bonuses, was up from £1bn last year.

That bonus pot will continue to accumulate through the second half of this year, and is likely to lead to more generous payouts for high-performing bankers when Barclays makes final pay decisions by the end of February next year.

The increase in the bonus pool follows a rise in pre-tax profits for the second quarter to £3.3bn, up 31% on the year and bringing Barclays’ half-year profits to £6.1bn, up 17%.

That also allowed the bank to announce new payouts for shareholders, including a £1bn share buy-back and £800m in dividends.

The strong results further emboldened calls for a tax raid on UK lenders, with the Trades Union Congress (TUC) saying that Burham’s plans to tackle the cost of living crisis required “more support in the months ahead”, particularly from big banks.

The TUC general secretary, Paul Nowak, said: “Big banks like Barclays are raking it in while working people and local businesses are struggling. High interest rates have been a boon for banks but have meant mortgage misery and higher bills for the rest of us.

“This is not a ‘hard choice’. Barclays’ bonanza profits show that banks can easily afford to pay more tax. This is a chance for the new prime minister and chancellor to show whose side they’re on. It’s time to increase the bank surcharge and tax banks to bring down energy bills.”