Liberal Democrat Chief Secretary to the Treasury, Danny Alexander, has announced details of a plan to raise an extra £1bn from a supplementary corporation tax charge applied to banks to help finish the job of eliminating the deficit.
The Lib Dems will push for this measure to be included in the forthcoming budget. If resisted by the Conservatives, then the proposal will be in the Lib Dem manifesto.
Tom Brake commented: “Now that the banks have had sufficient time to recover, and the economy as a whole is a lot more stable, we can begin imposing modest taxes on the largest and wealthiest institutions which will raise significant amounts of money, while doing very little harm to the banks”
Danny Alexander added: "Many banks were left seriously weakened after the crash. But as a result of our comprehensive range of reforms, and the strong economic recovery, the banking sector is now returning to health and profitability”
All the revenue raised from the supplementary charge would go towards deficit reduction and is part of the broader package announced by the Deputy Prime Minister and the Chief Secretary to the Treasury on February 5 to balance the books fairly.