Autumn Statement 2011 Bank Levy Increase

Autumn Statement 2011 - Bank Levy Increase.

The Chancellor, George Osborne, confirmed in his Autumn Statement a third increase in the levy on Banks.

The current levy of 0.075% will increase not to 0.078% but to 0.088% on 1st January 2012.

The levy, it is claimed, will raise £2.5bn per year, to increase State Revenue.  Although, we suggest the cut in corporations taxes for large companies, will negate this.

We see this as a policitcal move for the public, whilst behind the scenes, Banks will pay less in Corporation Tax and appear to be blatantly allowed to continue to take high commissions from investment selling when the rest of the financial services industry will be moving to nil commission and fees under the Retail Distribution Review (RDR).

Banks account for over 20% of UK tax revenue, so it is perhaps unsuprising that the Government is keen to keep banks based in the UK with corporation tax sweeteners yet be seen by the public to be taking some action for the Banks to pay more with an increased levy.