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Tax banks to cut energy bills, unions tell Burnham - BBC
Published 11 September 2026 · Source: Google News
Tax banks to cut energy bills, unions tell Burnham BBC
Trade unions have called for a windfall tax on banks to help fund reductions in household energy bills, in a proposal put directly to Greater Manchester mayor Andy Burnham as pressure mounts on politicians to address the cost of living crisis facing British households.
The demand, reported by the BBC, reflects growing frustration among trade union leaders that ordinary consumers continue to shoulder disproportionately high energy costs while the banking sector posts substantial profits. Unions argue that taxing bank profits could provide a direct mechanism to ease the financial burden on households struggling with heating and electricity costs, a demand that echoes previous calls for windfall taxes on energy companies themselves.
Burnham, who has built a political profile partly on championing northern and working-class interests, now finds himself positioned as a conduit for this demand, though it remains unclear what powers he would have to act on such a proposal given that taxation policy sits with central government rather than regional mayors. Nevertheless, his willingness to engage with union representatives on the issue signals the continuing salience of energy affordability as a political flashpoint, particularly in regions where fuel poverty rates remain stubbornly high.
The call comes against a backdrop of sustained public anger over energy bills that have remained elevated compared with pre-2021 levels, despite periodic falls in wholesale gas and electricity prices. Successive governments have faced criticism for failing to insulate consumers adequately from volatile international energy markets, with campaigners repeatedly pointing to the profits recorded by banks, energy firms and other large corporations as evidence that the burden of the crisis has not been shared equitably.
Windfall taxes have already been applied to oil and gas producers in the UK in recent years, raising billions in additional revenue for the Treasury, though debate continues over whether such levies discourage investment in domestic energy production. Extending a similar approach to the banking sector would represent a significant escalation, and would likely draw fierce opposition from financial institutions and business groups warning of the risk to the UK's competitiveness as a financial centre.
For the broader energy sector, the intervention underscores how bills remain a defining political issue even as the UK pushes ahead with its net zero transition. Investment in renewable generation, grid infrastructure and electric vehicle charging networks continues to expand, but the affordability of energy for ordinary households remains a persistent constraint on public support for the transition. Any move to redirect revenue from taxation towards reducing consumer bills, whether from banks or elsewhere, would need to be balanced against the substantial capital requirements of decarbonising the power system over the coming decade. Whether Burnham chooses to champion the unions' demand more formally, or how central government might respond, remains to be seen.