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."
- 1 Woman accidentally shoots herself in the head while posing for a selfie
- 2 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
- 4 Female Muay Thai champion hustles coaches to give them a beating
- 5 16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£35 - 40k + Benefits: Guru Careers: We are seeking a Software Developer (JavaS...
£18000 - £23000 per annum + Commission: SThree: As a Trainee Recruitment Consu...