Greens call for windfall tax on big banks' profits to support small business

The Green Party of England and Wales is calling for a 38% windfall tax on the profits of big banks to support small and medium-sized businesses.

Leader Zack Polanski said the tax would be applied to UK profits of more than £800m and be used to cut tax bills for a million smaller companies.

The idea was floated by the campaign group Positive Money, which estimated it would raise £19bn a year.

When a similar idea was raised last year, the trade body UK Finance said banks already paid both a corporation tax surcharge and a bank levy.

Polanski has previously claimed banks are ripping off customers and suggested they should pay "a bit more tax" - but this is the first time the Greens have put numbers on the policy.

He said the money would be "a lifeline" for small and medium enterprises (SMEs), cutting up to £10,500 from their National Insurance bills by doubling the Employment Allowance.

"Small businesses lie at the heart of our communities," he said.

"The large banks are cashing in on the backs of the small businesses who are the real innovators and creators, and profiteering from chaos and misery while ordinary people struggle.