Taxes

Sarah Olney Excerpts

Wednesday 12th November 2025 Commons Chamber

[Charlie Maynard]

I have already said that the Government should keep their promises, so there we are. May I continue, please?

We want to back hard-pressed households and small businesses and push for practical steps that will help ease the burden on families and get our high streets thriving again. We have called on the Government to respond to the crisis in our hospitality sector through an emergency VAT cut. That would boost footfall on our high streets, thus protecting jobs in a sector that employs people from all walks of life: young, old, those returning to work, those vulnerable part-time workers and everyone in between.

We also propose bringing down household energy costs as winter is coming by removing the biggest levy baked into people’s electricity bills and, in effect, putting more than £90 a year into the pockets of the average family. Indeed, that will be closer to £250 for some of the least well-off, who rely more on electricity for their heating. This is about supporting local businesses at the heart of our communities, which we all represent, and making a real difference to people’s lives by making it cheaper for them to heat their homes. For too long, our high streets and the small business owners on them have been crippled by the policies of successive Governments.

All that needs to be paid for and needs to be done in a way that is pro-growth and pro-business and which shields households from even greater bills each month. That is not an easy circle to square—I will not pretend that it is. We, as Liberal Democrats, seek to bring deliverable and progressive ideas to the table. If the Chancellor chose such ideas, she could deliver them in her Budget, which is just days away, and the impact would be felt by households across the country with almost immediate effect.

First, we call for a time-limited tax on big commercial banks levied on the massive windfall profits that they receive due to unintended consequences of our financial system. Because of high interest rates and the way the quantitative tightening programme works, the Treasury hands over billions of pounds to the big banks every year via the Bank of England, effectively subsidising banking profits at the expense of the taxpayer. Figures from the OBR confirm that, as things stand, we are on course to hand the big banks £50 billion over the course of this Parliament. Banks never expected to receive that windfall, they never relied on it and never took any risk to reap it. They have only received the payments because inflation and interest rates shot up. That needs to be corrected. It is fair and reasonable to return a portion of that unexpected windfall to the taxpayer and it will do nothing to undermine the health of our financial sector to claim it back.

[Sarah Olney (Richmond Park) (LD)]

Does my hon. Friend agree that interest rates shot up in the way he has just described as a direct result of that mini-Budget three years ago, and that that is precisely why the taxpayer is now paying such large interest rate payments to the banks? Is it not therefore right that the Conservative party should get behind our plan to tax the banks, to reclaim some of that money for the taxpayer?

[Charlie Maynard]

I wholeheartedly agree with my hon. Friend—[Interruption.] People might be joking about it, but our reputation as a country matters. That is why people invest in our country, and that is why traditionally our debt prices have been low. When we self-sabotage, we pay for it not just for a few weeks or months but for years, and we are paying for it now.