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Banks: Taxes

Volume 716: debated on Wednesday 27 January 2010

Question

Asked by

To ask Her Majesty’s Government whether they will consider introducing taxes similar to a capital levy on banks in receipt of public money, similar to the proposals of the Government of the United States. [HL1340]

The United States has announced a levy to recoup $117 billion that it expects to lose from interventions under the troubled asset relief programme. We believe that UK losses from banking sector interventions will be minimal at worst. The need for a similar levy therefore does not apply. The UK is, however, leading a global debate on how to ensure that banks, not taxpayers, support the financial sector in respect of any future emergencies.