Finance (No. 2) Bill — New Clause 3 — Review of Operation and Effectiveness of Bank Levy — 21 Feb 2018 at 17:30
The majority of MPs voted against a review of the effectiveness of the bank levy. The bank levy is an annual tax calculated as a fraction of a bank's applicable liabilities and equities. One proposed aspect of the rejected review was to compare the bank levy with the bank payroll tax, which was a tax levied on bank bonuses.
MPs were considering the Finance Bill
The proposed new clause rejected in this vote was titled: Review of operation and effectiveness of bank levy and stated:
- (1) Schedule 19 to FA 2011 (bank levy) is amended as follows.
- (2) After paragraph 81, insert—
- “Part 10
- 82 (1) Within six months of the passing of the Finance Act 2018, the Chancellor of the Exchequer shall undertake a review of the operation and effectiveness of the bank levy.
- (2) The review shall consider in particular—
- (a) the effectiveness of the levy in reflecting risks to the financial system and the wider UK economy arising from the banking sector,
- (b) the effectiveness of the levy in encouraging banks to move away from riskier funding models,
- (c) the revenue effects of the changes to the levy made in Schedule 2 to the Finance (No. 2) Act 2015,
- (d) the effectiveness of the anti-avoidance provisions in paragraphs 47 and 48 of this Schedule.
- (3) A review shall also compare the effects of the bank levy with those of the bank payroll tax (within the meaning given by Schedule 2 to the Finance Act 2010) in relation to—
- (a) revenue, and
- (b) the matters specified in sub-paragraph (2)(a) and (b).
- (4) A report of the review under this paragraph shall be laid before the House of Commons within one calendar month of its completion.””
The rejected new clause was accompanied by the following explanatory notice:
- This new clause requires the Government to carry out a review of the bank levy, including its effectiveness in relation to its stated aims, the revenue effects of the changes made in 2015 and the comparable effectiveness of the bank payroll tax.
The bank payroll tax was provided for by Schedule 1 of the Finance Act 2010, it was a tax of 50% on bonuses for bank employees which was in-force between 9 December 2009 and 5 April 2010.
-  Parliament's webpage on the Finance Bill
-  Parliament's webpage on the Finance Bill 2013
-  Schedule 19 of the Finance Act 2011 which provides for the bank levy
-  Schedule 1 of the Finance Act 2010
Votes by party, red entries are votes against the majority for that party.
What is Tell? '+1 tell' means that in addition one member of that party was a teller for that division lobby.
What are Boths? An MP can vote both aye and no in the same division. The boths page explains this.
What is Turnout? This is measured against the total membership of the party at the time of the vote.
|Party||Majority (No)||Minority (Aye)||Both||Turnout|
|Con||296 (+2 tell)||0||0||94.3%|
|Lab||0||221 (+2 tell)||0||86.1%|