Competition watchdog may tax banks to break their High Street monopoly

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The Independent Online

The Competition Commission today proposed subjecting Britain's leading banks to a tax on excess profits in an attempt to break their High Street monopoly.

The Competition Commission today proposed subjecting Britain's leading banks to a tax on excess profits in an attempt to break their High Street monopoly.

It is among a list of possible moves aimed at deterring their hold over small businesses.

The watchdog also said was it was considering regulation of charges.

Its suggestions come a fortnight after it said banks overcharged small and medium-sized businesses (SMEs) for services.

It said banks were able to restrict price competition, and added it was concerned about the inability among SMEs to switch between banks.

The commission said a tax would generate funds that could be used to assist competition in the sector and bring prices down.

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