Budget 2010 - Reforming Financial Services
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Issued 24 march 2010
A strong and sustainable financial services sector supports strong,
sustainable economic growth.
Following the most severe financial crisis for 60 years, the Government acted
to stabilise the financial sector and is now implementing reforms to improve
regulation, support better corporate governance and deliver a better deal for
consumers. The Government continues to work with international partners to
reform the international regulatory architecture and strengthen the financial
system for the future.
Budget 2010 announces:
* consumers will be given a new right to a basic bank account, following
consultation on the details;
* launching the Saving Gateway, where the Government adds 50 pence for each
£1 saved by working age people on low incomes, in July 2010;
* agreement with Lloyds Banking Group and Royal Bank of Scotland to lend £105
billion to homebuyers and businesses over the next 12 months;
* a new small business credit adjudicator with powers of enforcement to
ensure that small businesses are fairly treated when applying for loans; and *
the key principles to guide work on an internationally coordinated systemic risk
tax to ensure that financial institutions make a contribution to the wider costs
of financial crises.
The Budget builds on existing measures including:
* a 50 per cent tax on discretionary bonuses above £25,000 awarded to bankers
between 9 December 2009 and 5 April 2010;
* the Financial Services Authority’s (FSA) new code of practice on bankers’
pay, which ensures pay reflects long-term performance and can be clawed back;
* improving competition in the banking sector by increasing the number of
banks operating on the high street over the next few years as a result of
restructuring at RBS and Lloyds and the return of Northern Rock to private
ownership; and
* national rollout of the FSA’s Moneymadeclear money guidance scheme offering
practical, impartial information and advice on money issues.
The estimated net cost to the taxpayer of financial sector interventions has
now been reduced to around £6 billion at current market prices, down from the
£20-50 billion range provided at Budget 2009, reflecting greater stability and
confidence in the financial sector.
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Article Published/Sorted/Amended on Scopulus 2010-03-25 10:51:23 in Tax Articles
