George Osborne, the UK chancellor of the exchequer, has announced plans for a 0.04% levy on UK bank balance sheets from January 2011, rising to 0.07% from 2012. The move is expected to garner £1.2bn next year and £2bn a year in 2012.
Among the other headline measures in today’s Budget were a rise in capital gains tax from 18% to 28% from midnight tonight, a VAT rise to 20% from January and a two year public sector pay freeze on incomes over £21,000. Corporation tax will fall by a penny in the pound every year for...