David Prosser: Plenty more headroom on taxing the banks
Friday 22 October 2010
Outlook Just as the Chancellor promised, the legislation paving the way for the new levy on banks' balance sheets was published yesterday – and, just as he promised, the charge is designed to extract the "maximum sustainable tax revenues" from the City.
Just one problem – there is no agreement on what "maximum sustainable" means. Mr Osborne's view – that an annual take of £2.5bn is as much as he can get away with without driving banks abroad – is right at the bottom end of the range of suggestions. Compare it, for example, with the demands of the Robin Hood Tax Campaign, which is at the other extreme, with a call for a newannual tax of £20bn on the City.
Let's say this for the Chancellor – his desire to keep the banks in Britain is not going to be thwarted. When this levy was first unveiled six months ago, the banks breathed a sigh of relief. And since then they have secured some additional concessions such as a lower tax charge on savers' deposits on their balance sheets, even where these deposits are not covered by a state-backed compensation scheme.
So relaxed is the British Bankers' Association about the new charge that its only criticism now is that British institutions might be caught out by double taxation, as other countries introduce their own levies. If that is the worst of the banks' complaints, it seems safe to say that Mr Osborne could have been braver.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...