We’ll spend EU’s levy on banks
CHANCELLOR George Osborne vowed last night that Britain would spend the proceeds of a new tax on European banks on domestic policies.
EU Commissioner Michel Barnier wants banks to create a multi-billion-pound fund to cope with collapses.
The money would be collected by national governments but not used directly for bailing out struggling banks.
Instead, the reserve would be used “to ensure that a bank’s failure does not destabilise the financial system”.
But Mr Osborne made clear the Government wants to use the money on any domestic policies it chooses.
He said: “We are clear that the purpose of that bank levy is to raise money that can help – it will be used for general expenditure purposes.”