U.K. Banks Biggest Budget Losers as $7.8 Billion Tax Rise Looms
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British banks were the biggest losers in George Osborne’s last budget before May’s election after being hit with tax increases that will cost the industry 5.3 billion pounds ($7.8 billion) over the next five years.
The government will increase a levy on lenders’ balance sheets to raise 900 million pounds more a year, Osborne told lawmakers on Wednesday. Banks will also be barred from deducting the costs of compensating clients from taxable profit at a cost of almost 1 billion pounds over the next five years.