82 (1) Within six months of the passing of the Finance Act 2018, the Chancellor of the Exchequer shall undertake a review of the operation and effectiveness of the bank levy.
(2) The review shall consider in particular—
(a) the effectiveness of the levy in reflecting risks to the financial system and the wider UK economy arising from the banking sector,
(b) the effectiveness of the levy in encouraging banks to move away from riskier funding models,
(c) the revenue effects of the changes to the levy made in Schedule 2 to the Finance (No. 2) Act 2015,
(d) the effectiveness of the anti-avoidance provisions in paragraphs 47 and 48 of this Schedule.
(3) A review shall also compare the effects of the bank levy with those of the bank payroll tax (within the meaning given by Schedule 2 to the Finance Act 2010) in relation to—
(a) revenue, and
(b) the matters specified in sub-paragraph (2)(a) and (b).
(4) A report of the review under this paragraph shall be laid before the House of Commons within one calendar month of its completion.””—(Peter Dowd.)
This new clause requires the Government to carry out a review of the bank levy, including its effectiveness in relation to its stated aims, the revenue effects of the changes made in 2015 and the comparable effectiveness of the bank payroll tax.
Brought up, and read the First time.
Question put, That the clause be read a Second time.
The House divided:
Ayes 260, Noes 313.