CHANCELLOR George Osborne has reaffirmed plans to introduce a permanent levy on the country’s banks as part of his plan to ensure that they make a “fairer contribution” to society.
The Chancellor confirmed as part of the Comprehensive Spending Review that the tax would raise more than the one-year levy the Labour Government had previously introduced on bankers’ bonuses.
But he said that the aim was not to unduly punish a sector that remained important in terms of the amount of jobs it provides.
“We do not want to let banks off the hook nor drive them abroad”, said Osborne. However, he added that the Coalition Government planned to “extract the maximum sustainable tax revenues” from the financial services sector.
“I completely understand the public anger that banks so appallingly regulated over the past decade and wrought such damage to the economy should contemplate paying such high bonuses,” he said.
The British Bankers’ Association said that the industry had been expecting the previously-announced bank levy but said that it needed to see more details of the proposals before it was able to assess the likely impact on the sector.
“Decisions taken today will have an effect on the whole industry and to remain competitive UK policies need to be in step with those elsewhere,” a spokesman said.
“Financial services currently contribute around £24bn in taxes every year so we are pleased the Chancellor said he wishes to balance taxation with the attractiveness of the UK as a global financial centre and the need to retain jobs.”
If you’re not getting our daily emails, your competitors might be. Click here to check your account settings.
