Now here in BULS we are willing to give credit where credit is due, however slight it is. The Coalition has recently decided to raise the bank levy to £2.5 billion, up by £800 million. However, this is still not enough despite the improvement as the banks still face a tax cut of around a £1 billion when compared to the bankers bonus tax last year and that’s not even including the cut in corporation tax which means even with the bank levy the banks break even.
I’d also like to tackle the issue or argument that if you tax the banks too much they will move abroad. Well if you make it explicitly clear that this levy is just merely for the Parliament, even if the corporation tax cut doesn’t include the banks and the levy is higher, banks are not going to move abroad given they know it’s just for one Parliament, i.e. five years. So need to get into a big fuss.