-
Government to increase bank levy
0
February 8th, 2011British Business, British EconomyFrom the BBC:
The government says it will increase the levy on bank profits to £2.5bn this year – raising an extra £800m.
The change would usually be set out in next month’s Budget.
But Chancellor George Osborne said the move would help banks know the context they were operating in before announcing their bonus payments in the next few weeks.
A deal with banks to increase loans to businesses and to limit bonus payments has not yet been finalised.
Talks on the wide-ranging Project Merlin stalled last month.
Mr Osborne had originally announced that the government’s new bank levy would be phased in, with a lower rate applicable in 2011.
But BBC business editor Robert Peston said the Chancellor had “concluded that the banks are in better shape than he thought less than two months ago, when he announced that a smaller levy would apply in the current year”.
Source: http://www.bbc.co.uk/news/business-12389416
Tags: Bank Levy, Bank of England, banks, British Economy