A levy should be imposed on banks’ profits that could bring in up to £8bn per year to plug losses caused by the government’s quantitative easing programme, according to a left-wing think tank.

The Institute for Public Policy Research has proposed a “Thatcher-style tax on bank windfalls” to be brought in at the Autumn Budget. It says that quantitative easing, first brought in during the global financial crisis, is costing UK taxpayers £22bn per year and that a bank tax could help plug that hole.