Rahel reeves Tax bank should make profits to recover Tax payer Money spent on compensation for losses from Bank of EnglandCash-printing drive, a think tank has said.
Like a levy on the winds from major firms Barcalage, Lloyds, HSBC And Netwest According to a report by the Institute for Public Policy Research, it can be increased by £ 8 billion per year for public services.
Think tank argues quantitative easing (That) program.
After the period of earning profits on the program, the Bank of England is facing record deficit, the taxpayer is estimated to cost a cost of 22 billion pounds per year. Interest rates Since 2021, they have been warned.
This money is then partially being funnel for bank shareholders due to the “flaw” policy design, promotes profits, while millions of people across the UK have to face cost-living pressures, the report states.
It recommends that the Treasury introduces a “QE reserved income levy”, which is similar to 2.5 percent deposit. Banks Under Margaret Thecher in 1981, to unbalance the existing set-up.
Leading Think Tank, which worked with the government on its industrial strategy, also slowed Bank of England Sales Bonds-Followed quantitative tightening (QT)-to save more than £ 12 billion years.
Both these policies simultaneously save more than £ 100 billion on this Parliament, opening the fiscal headroom very important for the Chancellor.
Under the proposals, the receipts from banks levy will be used to support “homes and development” and once all the Qi-related gilt will move away from the balance sheet of Bank of England, or when the bank rates reach 2 percent, it means that tax will be temporary.
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The think tank stated that given the “targeted” nature of the tax, only one “small impact should be” on the competition of the UK banks, if there is any and small banks should be exempted from measures, the think tank said.
This comes amid the warnings of economists that the tax increases in the budget of autumn, requiring a hole plugs in public finance, making speculation about which areas the Chancellor may target.
Treasury has been approached for comment.
Associate Director Carton Jung for the Economic Policy in IPPR and former Bank of England said: “Bank of England and Treasury provoked the implementation of quantitative ease.
“What started as a program to promote the economy is now a massive drain on taxpayer’s money.
“While families struggle with rising costs, the government is effectively writing multiple-pound checks to bank shareholders.
“In the 1980s, a targeted levy inspired by Margaret Thatcher’s own perspective will resume the wind -colon and put the money to better use – helping people and economy, not only a bank balance sheet.”
The UK finance criticized the proposals, arguing that another tax on banks would make Britain internationally competitive.
The Trade Association said, “Here the banks -based banks already pay both tax overload and bank levy.”
Another adding “will run the counter with the objective of the government to support the financial services sector to help the growth in broad economy and run investment,” said this.
