Bank levy raised to make 'bigger contribution'
The bank levy rate has been raised to 0.21%, Chancellor George Osborne announced today.
This will raise an additional £900 million a year.
Osborne also announced the Government will stop banks from deducting from corporation tax the compensation they make to customers for products they have been mis-sold, like PPI. Taken together, these new banking taxes will raise £5.3 billion across the forecast.
Osborne said:
"But as our banking sector becomes more profitable again, I believe they can make a bigger contribution to the repair of our public finances.
"The banks got support going into the crisis; now they must support the whole country as we recover from the crisis."
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