Another raid on British banks ..... Easy money or one more straw on the camel's back ?

20/3/15

 Another raid on British banks ..... Easy money or one more straw on the camel's back ?

 See The Times , "Bankers silence speaks volumes ....", p.44.

Amid all the predictable squabbling between political parties that followed Wednesday's UK Budget, the one measure that has largely escaped criticism from the politicos is the Chancellor's £5.3 billion raid on UK based banks in the form of a 35% increase in the levy. This is a reflection of the general public hostility towards the banking sector, and those hoping to be elected in May are unlikely to be seen offering the banks any support. It is this same hostility that has stopped bank bosses from speaking out, though privately they are said to be furious. London is the only major financial centre that has a bank levy, and such measures put its future in doubt. UK banks such as HSBC have quietly mooted the idea of relocating its headquarters elsewhere before, and Wednesday's announcement is unlikely to have made that possibility any more remote. If they decide to up sticks, others will surely follow. Politically speaking, banks are an easy target in the UK just now but the Chancellor's actions bring to mind the line about the goose and the golden egg.