Kwasi Kwarteng rejects calls for new ‘tax’ on UK banks
Kwasi Kwarteng has quashed calls to impose a new “tax” on Britain’s banks that might have raised billions of pounds, following strong opposition from the sector and warnings that the costs would be passed on to consumers.
The UK chancellor was urged by influential economists to raid what one banker called the “ultimate cash behind the sofa” by reducing or stopping interest payments on the large reserves held by commercial banks at the Bank of England overnight.
The policy could have raised tens of billions of pounds as interest rates rise and helped plug a fiscal hole estimated at up to £60bn, following last month’s “mini” Budget.
This story originally appeared on: Financial Times - Author:Chris Giles
