The UK press today has run a number of articles on the bank levy. For example, the FT points out there is an ongoing budget shortfall in the UK of some £57billion at present and asks where help might come from in filling this deficit. Apparently bank levies are good business, generating some 20bp on UK bank assets and targeting almost £4billion in revenues against a Treasury shortfall.
Given the current levy is the 9th increase since 2011, it begins to some to feel like a handy tap to turn on and off at will.
Others argue that banks have been beneficiaries of tax-payer largess, thus skimming a couple cents is perfectly fine. What do you think? Are UK banks positioning a move to Asia to get out of this net or is this all talk? The FT argues it is time to consider reform of the levy for the benefit of banks and tax payers alike. For more information on this governance related matter, see http://www.ft.com/cms/s/0/50e66224-f7e6-11e4-9beb-00144feab7de.html#axzz3ZrjBSOL2.
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