Lack of clarity in Labour and Tory approaches to banks – Cable

Commenting on Alistair Darling’s warnings that he will not be ‘held to ransom’ by the banks and George Osborne’s assertion that he wouldn’t rule out a windfall tax on bonuses, Liberal Democrat Shadow Chancellor, Vince Cable said:

“There is a complete lack of clarity at the heart of the Labour and Tory approaches to banks.

“The simple and correct approach, since many banks are returning to high levels of profitability, is for banks to pay for the taxpayer guarantee that they currently enjoy.

“A 10% levy on bank profits would raise around £2bn in current conditions and would go to paying down the deficit.

“This is a much more effective solution than a one off levy and recognises the debt that the banks owe to the taxpayer.”