22 Oct 2010

Banks in UK face new levy

10:12 am on 22 October 2010

The British government has published details of a new levy on banks, which is expected to raise £2.5bn a year from 2012.

The legislation is aimed at encouraging banks to take fewer funding risks, but the banking industry says the tax could undermine the attractiveness of the UK as a financial centre, the BBC reports.

The levy will apply to the global balance sheets of UK banks and the UK operations of overseas banks, the British Treasury said.

Banks were consulted on the legislation over the summer.

The levy is not expected to affect smaller banks and building societies