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Darling rules out levy on banks | Darling rules out levy on banks |
(about 1 hour later) | |
A US-style levy on British banks part-owned by the taxpayer has been ruled out by Chancellor Alistair Darling. | A US-style levy on British banks part-owned by the taxpayer has been ruled out by Chancellor Alistair Darling. |
President Barack Obama is to hit the largest US banks with a 0.15% charge on liabilities to recover some of the billions spent propping the firms. | President Barack Obama is to hit the largest US banks with a 0.15% charge on liabilities to recover some of the billions spent propping the firms. |
In an interview with The Scotsman newspaper, Mr Darling said the UK did not have similar plans. | In an interview with The Scotsman newspaper, Mr Darling said the UK did not have similar plans. |
Mr Darling said the UK was in a different situation as the government holds shares in the banks it helped. | |
Fresh measures to curtail banks had been demanded after US giant JP Morgan Chase revealed profits doubled in 2009. | Fresh measures to curtail banks had been demanded after US giant JP Morgan Chase revealed profits doubled in 2009. |
The bank also disclosed that pay and bonuses were to rise by 18%. | The bank also disclosed that pay and bonuses were to rise by 18%. |
Mr Darling told the Scotsman: "The Americans are doing something different." | Mr Darling told the Scotsman: "The Americans are doing something different." |
He reiterated the UK bail-out involved buying shares in the troubled banks which could be sold in future years "when the time is right". | He reiterated the UK bail-out involved buying shares in the troubled banks which could be sold in future years "when the time is right". |
Bankers can't now use the excuse that they will go abroad, because if America is doing it there is nowhere else to go John Mann MP | Bankers can't now use the excuse that they will go abroad, because if America is doing it there is nowhere else to go John Mann MP |
Shadow chancellor George Osborne has said he would only support a levy if there was an agreement to apply it across all major economies. | Shadow chancellor George Osborne has said he would only support a levy if there was an agreement to apply it across all major economies. |
But one Labour backbencher has called for tougher restrictions on banks. | But one Labour backbencher has called for tougher restrictions on banks. |
John Mann said: "We have the ability now to copy what Obama has done on the principle of taxing bankers' bonuses. | John Mann said: "We have the ability now to copy what Obama has done on the principle of taxing bankers' bonuses. |
"Bankers can't now use the excuse that they will go abroad, because if America is doing it there is nowhere else to go." | "Bankers can't now use the excuse that they will go abroad, because if America is doing it there is nowhere else to go." |
Changing behaviour | Changing behaviour |
Mr Darling's comments come after Mayor of London Boris Johnson claimed around 9,000 bankers may leave the City of London following a tax on bonuses over £25,000 and a 50p rate for top earners. | Mr Darling's comments come after Mayor of London Boris Johnson claimed around 9,000 bankers may leave the City of London following a tax on bonuses over £25,000 and a 50p rate for top earners. |
The chancellor announced the one-off 50% tax on bonuses in December. | The chancellor announced the one-off 50% tax on bonuses in December. |
In an interview with the Daily Telegraph, Business Secretary Peter Mandelson said banks should "reflect on" their decision to continue paying large bonuses regardless. | In an interview with the Daily Telegraph, Business Secretary Peter Mandelson said banks should "reflect on" their decision to continue paying large bonuses regardless. |
He said: "The point was to modify banks' behaviour. You can argue the immediate effect has been not to change their behaviour." | He said: "The point was to modify banks' behaviour. You can argue the immediate effect has been not to change their behaviour." |
But he also argued that the 50p top rate of tax announced in April 2009 should be temporary, adding: "I would favour, when circumstances permit, for the top rate to come down, just as it has gone up when times were hard." | But he also argued that the 50p top rate of tax announced in April 2009 should be temporary, adding: "I would favour, when circumstances permit, for the top rate to come down, just as it has gone up when times were hard." |