Bank levy a tax on customers

Prof Philip Booth comments on draft bank levy legislation

Commenting on the draft bank levy legislation published today, Philip Booth, Editorial and Programme Director at the Institute of Economic Affairs, said:

“The burden of this levy will be felt by banks' owners and customers. Ultimately those who will pay are shareholders – in other words potential pensioners and other savers – and the users of financial services. Every man and woman in the country will bear the cost of this tax.

“It is disingenuous for the government to argue that its policy is to make the banking system safe whilst simultaneously imposing a permanent levy designed to penalise banks for the risks they pose. The bank levy should not be a permanent fixture of our system. At most the government should use this tax as a temporary measure; the measure should then cease when the Independent Commission on Banking’s proposals to ensure banks can fail in an orderly fashion are adopted.”

To arrange an interview with Philip Booth, IEA Editorial Director or Mark Littlewood, IEA Director General, please contact Ruth Porter, Communications Manager, 077 5171 7781, 020 7799 8900, rporter@iea.org.uk.

 

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