Liberal Democrat Chief Secretary to the Treasury Danny Alexander announced details of a plan to raise an extra £1bn from a supplementary corporation tax charge applied to banks to help finish the job of eliminating the deficit.
The supplementary charge will be in addition to the existing Bank Levy. The Lib Dems will push for this measure to be included in the forthcoming budget. If resisted by the Conservatives, then the proposal will be in the party's manifesto.
Ros Kayes, our Parliamentary Candidate, says: "As corporate greed undoubtedly drove the banking crisis in 2008, it is only right that they pay money back! Here in West Dorset, we don't always get the benefit of the banking industry but undoubtedly feel the cuts that come as a result of it! Thankfully this tax will go someway to redress the balance."
Lib Dems in government introduced the Bank Levy which is on track to raise £8 billion in this Parliament. With the final stage of deficit reduction requiring around £30 billion of savings, it would be totally wrong for all of that to be found from cuts to public services as the Conservatives propose.
Liberal Democrats believe we must balance the books and do so fairly, so it is only right to reconsider whether banks are making a fair contribution to deficit reduction. This tax would remain in place until that job is complete.