Osborne mulls fresh levy on bank profits

first_imgMonday 4 October 2010 9:09 pm whatsapp Osborne mulls fresh levy on bank profits GEORGE Osborne is prepared to introduce a new tax on banks’ profits and pay, which is likely to be implemented if they fail to show restraint in the forthcoming bonus round.The chancellor told delegates at the Tory party conference in Birmingham that he wanted to see “genuine talent rewarded”, but warned the government would pursue another levy if banks pay out politically unpalatable bonuses.He said: “I want Britain to be the home of successful, competitive and stable financial services. But let me make this clear: we will not allow money to flow unimpeded out of those banks into huge bonuses, if that means money is not flowing out in credit to the small businesses who did nothing to cause this crash and suffered most in it.”Aides to the chancellor said any new levy on the banks would take the form of a so-called financial activities tax (FAT), essentially a tax on profits and remuneration, which was first mooted by the International Monetary Fund (IMF).Previously, the government has said it would only introduce an FAT if it could secure international agreement, due to fears that banks could relocate overseas to avoid the levy. But Treasury officials think an FAT could be brought in without a broad international agreement, as long as there is an accord in a handful of countries, like France, Germany and the US. The chancellor is planning to discuss the FAT with other finance ministers at international meetings like the G20 to gauge support.Even if nations like Hong Kong, which is fast-becoming a major international banking centre, refuse to sign up to the FAT, the government is prepared to press ahead with the plans.Treasury officials have been emboldened by the level of global consensus on the levy on balance sheets, which is being adopted in the UK, US, France and Germany.According to one Treasury aide, this limited arc of support constitutes an “international agreement”, even though emerging banking centres like Hong Kong have refused to sign up. “We believe the degree of international co-operation combined with the level at which it is set is enough to stop banks leaving the UK,” he said. whatsapp KCS-content More From Our Partners Native American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgFeds seized 18 devices from Rudy Giuliani and his employees in April raidnypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comSidney Crosby, Alex Ovechkin are graying and frayingnypost.comConnecticut man dies after crashing Harley into live bearnypost.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comBill Gates reportedly hoped Jeffrey Epstein would help him win a Nobelnypost.comcenter_img by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastNoteabley25 Funny Notes Written By StrangersNoteableyMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comPeople TodayNewborn’s Strange Behavior Troubles Mom, 40 Years Later She Finds The Reason Behind ItPeople Today Show Comments ▼ Share Tags: NULLlast_img read more