The Green Party of England and Wales has proposed a windfall tax on major banks’ profits as a means to support small businesses and address what it describes as the financial exploitation of consumers and local enterprises. Party leader Zack Polanski announced plans to introduce a 38 percent tax on domestic profits exceeding £800 million for the country’s largest banks.

According to the Green Party, the levy could generate at least £19 billion in revenue. These funds would then be directed toward assisting small and medium-sized enterprises (SMEs), which the party characterizes as central to local communities and economic stability. Part of the proposal includes doubling the employment allowance for SMEs, which could reduce a company’s national insurance contributions by up to £10,500 annually.

Polanski criticized the banking sector for benefiting disproportionately amid economic challenges faced by smaller businesses and individuals. “The banks are cashing in on the backs of the small businesses who are the real creators, and profiteering from chaos and misery while ordinary people struggle,” he stated.

The Green Party’s proposal reflects a broader debate about the role of large financial institutions in the UK economy, especially during periods of economic uncertainty. Proponents argue that a windfall tax on banks’ excessive profits could redistribute resources to sectors that have been under pressure, such as small businesses, which often face higher costs and reduced access to capital. Critics of such measures caution that additional taxation on banks might affect lending capacity or financial stability.

No formal government response to the Green Party’s windfall tax proposal has been announced. The UK government and regulatory bodies have periodically examined bank profits and taxation, balancing economic growth objectives with concerns over fairness and corporate responsibility.