Banks were told to brace themselves for "payback time", as Alistair Darling put the finishing touches to a Budget that will propose new bank taxes and force them to improve the way they deal with customers and small businesses.
The Financial Times reports the Chancellor's pre-election Budget on Wednesday will see him use tactics to force the banks to repay society for the damage they inflicted on the economy over the past two years. Lord Myners, City minister, set the tone on Tuesday when he said: "The taxpayer rescued the banking system 18 months ago. The time now is for payback." Treasury officials say they no longer "trust the banks as much" to deliver on promises to voluntarily improve their level of service and that the Budget marks an attempt by Darling to treat them more like a utility. Darling wil...
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