AN emergency windfall tax on banks is needed after the sector generated nearly £20 billion in profits last year, Unite said today.

The union said that its research shows the industry pocketed a whopping £19.8bn in the first nine months of 2022, largely due to rising interest rates.

The call came as the Bank of England introduced another hike in the base rate — from 3.5 to 4 per cent — despite warning the country is set to enter another recession.