George Osborne rejects EU bank insurance tax
Chancellor of the Exchequer George Osborne is today set to fight EU plans to introduce a bank insurance tax which would be charged against all banks operating in Europe and used to set up a fund to cover EU bank failures in the future. There is concern from within the UK government that the creation of a bank insurance tax administered by the European Union could encourage excessive risk-taking in the knowledge that there is funding available to bail out any failing banks.
George Osborne also believes that each country in the European Union should be in charge of protecting against bank failures in their own economy something which would seem to make sense when you consider the difference in relative strengths across the European financial arena. We could effectively see some of the stronger UK banking operations bailing out their weaker European counterparts or vice versa.
There's also the fact that an EU bank insurance tax could be seen as one more step towards a federal Europe, something which a number of countries within the European Union are reluctant to commit to. When you also take into account the fact that the UK has the largest financial markets within Europe it is likely that UK banking operations will pay more than their fair share into this "EU bank insurance pot".
Share this..
Related stories
Has George Osborne played into the hands of the Labour Party?
George Osborne has today announced plans for the Conservative party to save UK voters £23 billion over the next five years with massive cuts in public sector spending. Indeed, the proposed cuts would be the largest for 30 years, a factor which has surprised many in the UK. So is this a calculated gamble by George Osborne or has he played into the hands of the Labour Party?
There is...
Benefits system facing a further squeeze
While the revelation that headline unemployment fell in the final quarter of 2009 was well received by investment markets, under the surface there are many other issues to consider. We saw an increase in the number of long-term unemployed, an increase in those receiving jobseekers allowance and concerns about the future. This increase in long-term unemployed and those receiving jobseekers allo...
Read MoreIs VAT the first crutch to be taken away from the UK economy?
Forecasts regarding the increase in VAT, from 15% to 17.5%, are causing concern with some analysts expecting a reduction of 0.7% in UK retail spending in the first part of 2010, and a further 0.2% reduction in the latter part of the year. While this will obviously have an impact upon the performance of the UK economy in the short to medium term, there is a fear that by taking away the first of man...
Read MorePublic sector job cuts could hit 750,000
As we approach voting day in the general election there are concerns that no matter which party wins the election we will see potentially 750,000 job cuts in the public sector. This despite the fact that all three of the main political parties have been unwilling or unable to put a figure on potential job cuts in the public sector but many Think Tanks have issued their own reports. A potential...
Read MoreAnother day another tax year begins
As we move into the 2009/10 tax year the ongoing increase in general UK taxation continues with a number of subtle tax increases added to the mix. However, one intriguing fact is the way in which many investors around the UK seem to wait until the very last minute of the new tax year to take advantage of their various allowances and tax planning options.
It is vital that you do the...