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AS2013: Bank levy increase to raise extra £256m

The bank levy will increase in January to raise an extra £256m in 2013-14.

The full Autumn Statement notes the Government will also “make changes to the bank levy’s detailed design that have the effect of widening the tax base.”

It reads: “This will help to restore forecasts for future years’ receipts to target, and ensure that banks make a fair contribution that reflects their risks to the financial system and the wider UK economy.”

It was previously increased to 0.142 per cent from 0.13 per cent in the March Budget. 

Compared to the previous rate, the tax will raise an extra £256m in 2013-14, £520m in 2015-16 and £535m thereafter. 

In total the levy will now raise £2.7bn in 2014-15 and £2.9bn each year from 2015-16.

The Government has faced repeated criticism since the introduction of the levy as the level of revenue collected has failed to match predictions. 

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