Govt to increase bank levy to £2.5bn

The change, which would usually be set out in next month's Budget, has been announced now to help banks know the context they are working in before they announce their bonus payments in the next few weeks,  Chancellor George Osborne said. This levy increase is being taken as an indication Osborne believes the banks are in better shape than he thought less than two months ago, when he announced a smaller levy would apply in the current year. Read more...