Bank levy will raise £2.5bn a year

Draft legislation published today says the levy, to be introduced in January, will apply to the global balance sheets of UK banks as well as the UK operations of overseas institutions. The Treasury said the legislation would ensure banks made a contribution to society equitable to the potential risk they pose to the financial system. Financial secretary Mark Hoban said he hoped it would also incentivise banks to "make greater use" of more stable financial sources, such as long term debt and equity. Chancellor George Osborne said on Wednesday he wanted "to extract the maximum sustai...