Bank levy: Complaints in the city as annual charge is raised
George Osborne's decision to increase his annual banking levy was met with a mixture of frustration and resignation in the City.
A hike had been seen as a done deal. The Chancellor said that to hit his target of raising £2.5bn from the banks he would have to up the levy from 0.078 to 0.088 per cent of their total deposits.
Banks cannot yet work out the extra cost as the final figure is based on year-end deposits. But they see it as another cost of doing business in the UK and a sign they remain a political target.
Yesterday was the third time Mr Osborne has hiked up the levy. He tried to sugar the pill by resisting a proposed European tax on every financial transaction.
The taxpayer-backed Royal Bank of Scotland and Lloyds Banking Group have no option but to pay up. Barclays probably will, too.
For HSBC and Standard Chartered – with huge overseas operations – the rise is a further factor in deciding whether to stay in Britain. Both object to the levy as it is charged on non-UK deposits.
Angela Knight, head of the British Bankers' Association, said: "Banks are committed to playing their part in restoring public finances through the many different taxes they pay but a stable tax regime is important.
"Banks of all nationalities do business around the world from here and pay tax here."
New UK station Russia Today gives a very bizarre view of Britain
By performing as African Americans or Indians, white people get to play act a kind of 'imaginary liberation', writes Michael Mark Cohen
Top Gear presenter is no stranger to foot-in-mouth controversy
New essay by JK Rowling went live on Pottermore site this morning
Review: Mike Leigh's biopic is a rambling, rich character study
- 1 'Nasa Confirms Six Days of Darkness in December': No, they don't - it's a hoax
- 2 Canadian actor punched in face after 'Islamophobia' experiment goes wrong in wake of Ottawa shooting
- 3 Topshop at centre of row over body image as 'shocking' skinny mannequin photo goes viral
- 4 If you think Russell Brand’s new book is confused, you should read what his critics have to say about it
- 5 Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
'Nasa Confirms Six Days of Darkness in December': No, they don't - it's a hoax
Canadian actor punched in face after 'Islamophobia' experiment goes wrong in wake of Ottawa shooting
Halloween 2014: From the Screaming Man of Pluckley to the 'White Lady' of the Tower of London - Britain's 20 most haunted places
Russian politician says Apple CEO Tim Cook should be 'banned' from country after coming out as gay
Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
Pope Francis declares evolution and Big Bang theory are real and God is not 'a magician with a magic wand'
Huge surge in Ukip support after EU funding row, according to new poll
Ukip ‘exploiting grooming scandal’ to secure party’s first police chief
Nigel Farage: 'There’s nothing wrong with white people blacking up'
Maureen Lipman says 'she can't vote Labour while Ed Miliband is leader'
Muslims, immigration and teenage pregnancy: British people are ignorant about almost everything
£18000 - £27000 per annum + Commission: SThree: The SThree group is a world le...
£50 - £70 per day: Randstad Education Chelmsford: Are you an SEN Learning Supp...
£21000 - £31000 per annum: Randstad Education Chelmsford: KS2 Teachers - Chelm...
£21500 - £31500 per day: Randstad Education Chelmsford: Would you like to work...