View more on these topics

Labour hits out at Govt over £1.1bn bank levy shortfall

Treasury financial secretary Chris Leslie

Labour has attacked the Government’s bank levy for raising £1.1bn less revenue in the last year than originally planned, claiming it needs to be redesigned.

In a finance bill debate last week, shadow Treasury financial secretary Chris Leslie said chancellor George Osborne had been “tremendously generous” to banks.

The Government targeted annual revenue of £2.5bn from the bank levy when it was introduced in 2010, but in 2012/13 it raised £1.6bn. Leslie includes the effect of a corporation tax cut that saved banks £200m, creating a £1.1bn shortfall.

In 2011/12, the Government raised £1.8bn and when including the corporation tax cut it amounted to £800m less revenue than planned.

Leslie said: “The Government’s bank levy has raised far less than the £2.5bn promised. In the financial year just ended—2012-13—the bank levy raised just £1.6bn, from which a further £200m has to be deducted because of the generosity of the corporation tax cut that the chancellor has lavished on the banks.

“All in all, the banks have paid £1.1bn less than they were supposed to pay in the last financial year. This is a tremendously generous chancellor, but only to the banks.”

Leslie said one option is to increase the levy but added the Government needs to go “back to the drawing board” to redesign the tax and make sure it works.

He also reiterated Labour’s calls for a repeat of the tax on bankers’ bonuses made in 2009, claiming it would raise £2bn a year.


UK avoids fall into triple-dip recession

The UK has managed to avoid dropping into an unprecedented triple-dip recession after the economy grew in the opening three months of the year. Figures published by the Office for National Statistics shows the UK expanded by 0.3 per cent in 2013’s first quarter. This follows the 0.3 per cent contraction that was witnessed in the […]

Ex-Honister adviser jailed for £400k tax evasion

A former Honister Partners adviser has been jailed for 18 months after he failed to pay income tax for 13 years on earnings of more than £1m. David Douglass was sentenced last week after he evaded £400,000 of tax through a VAT and income tax fraud. He spent the money on a luxury lifestyle including […]

EU body needs more powers to monitor banks

European Banking Authority executive director Adam Farkas has blamed national regulators for not spotting bank failures in its EU-wide stress tests. Speaking at the Lansons Communications Future of Financial Services conference, Farkas said the EBA needs more powers to do its job properly.  The EBA, set up in 2011, has come under fire after its […]

Salary satisfaction is a case of who you are

The last few years have seen a general wage freeze with the stubbornly under-performing economy taking most of the blame, however, it seems that despite George Osborne’s claims, we are not all in this together. Despite the lean few years and salaries for employees being depressed, it seems that senior executives and company directors have […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm