Today's bank levy rise - step forward but more to be done

Step forward to better bank control but more to be done

Plaid Cymru has welcomed the increase in the bank levy that comes into effect today, but warned that the amounts raised were far smaller than those which could be generated by an international financial transaction tax, also known as a Robin Hood Tax.

The bank levy was raised to 0.88% on debts above £20bn as a behavioural tax to prevent large banks from taking on risky amounts of debt. It is hoped to raise around £2.6bn per annum from the banks.

Plaid Cymru treasury spokesperson, Jonathan Edwards MP said:

“While welcoming the increase on the banking levy, it is confusing that the Tory government can support one form of behavioural tax – to supposedly stop banks from taking on risky debt – but not another – a Robin Hood Tax on financial transactions.

“It seems especially strange in the light of David Cameron’s actions a few weeks ago in vetoing an EU treaty supposedly on the basis of the impact upon the City of London.

“It was the financial sector, not the public sector, which got us into this economic mess and they should be contributing significantly to get us out of it.

“A financial transaction tax, a Robin Hood Tax, would ensure that an often unnecessary and unproductive trade of money will become a socially productive investment in our future.

“There is significant pressure towards the introduction of a Robin Hood Tax, which is estimated could raise anywhere between £10bn and £20bn in the UK alone – depending on the amount charged, and could make a genuine difference if invested properly.”