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Government to increase bank levy to £2.5bn

The Government is to increase the levy on banks’ profits from £1.7bn to £2.5bn this year.

Chancellor George Osborne told this morning’s Today programme that he wanted to ensure banks were making a “fair contribution” to society.

He said the increase has been announced ahead of the Budget on March 23 so he can enter into negotiations with the banks on lending figures and bonuses in “good faith”.

Osborne originally announced the levy would be phased in with a lower rate expected to bring in £1.7bn this year.

Osborne said he wanted “more lending, more tax, a bigger contribution to society and less bonuses than they paid last year”. “I’m not prepared to conclude a deal (with the banks) until I think it’s a good one,”” he added.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Why does any one want to make a profit in the UK any more? Be you self employed or a corporation all this and the last bunch of Thieves do is try and take as much of your money as possible without rethinking the whole problem.

  2. Christopher | 8 Feb 2011 9:11 am

    I dont think that many will have sympathy for the banks. They, unlike other companies in the UK, caused financial chaos with their greed and stupidity and deserve to repay their debt to the country.

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