Oral Answers to Questions

Paul Blomfield Excerpts

Tuesday 21st June 2011 Commons Chamber

[Justine Greening]

I emphasise to the hon. Gentleman that the measures we came up with for the Budget were ones that we talked to charities about in order to pull together. Over this Parliament, the measures will encourage approximately £600 million more going to charities from donations, and I think that all hon. Members across the House should welcome that.

[Paul Blomfield (Sheffield Central) (Lab)]

10. What assessment he has made of the level of taxation of banks.

[The Financial Secretary to the Treasury (Mr Mark Hoban)]

Banks operating in the UK make a significant contribution to the economy and public finances. However, as the financial crisis demonstrated, the sector also posed a potential risk to the wider economy and it is only fair for the banks to make an additional contribution to reflect that. That is why we have implemented a permanent levy on the balance sheet of banks, which will raise more than £2.5 billion each year.

[Paul Blomfield]

I thank the Minister for that reply, but will he recognise the enormous feeling throughout the country that the banks need to fulfil their responsibility for the challenges we face? Will he therefore explain the stubborn refusal of the Government to repeat last year’s bonus tax, on top of the bank levy, which would generate the revenue to build 25,000 affordable homes and create 100,000 new jobs?

[Mr Hoban]

Perhaps the hon. Gentleman should speak to the right hon. Member for Edinburgh South West (Mr Darling), who said that imposing the bank levy again simply would not work.