Summer Budget: Bank shares rise as levy abolished in favour of 'surcharge'

Chancellor George Osborne has announced in the Summer Budget that banks will face a new 8% surcharge on profits.

Osborne said that he would gradually phase out the bank levy over the next six years, months after announcing a 50% rise in the levy in the last Budget. He said: "I will, over the next six years, gradually reduce the bank levy rate and after that make sure it no longer applies to worldwide balance sheets." The old charge will be replaced by a new 8% corporation tax surcharge. Osborne added that the move would mean the current government would raise more from banks than was achieved by the previous coalition government. The new charge will apply only to UK assets, while the exist...