Banking Reforms

The agreement announced on 9th February between the goverment and leading banks shows that the Government is taking action to ensure that the banks pay their fair share in tax, show restraint in pay and bonuses and offer real support to businesses and the regions.

As a result of this agreement the UK's biggest high street banks have agreed to

• Lend more to businesses this year than last, increasing lending to SMEs by 15%.

• Ensure that pay and bonuses will be lower this year than last year and lower than they would have been prior to this agreement.
• Create the most transparent pay disclosure regime in the world.
• Invest an extra £1.2 billion in the new Business Growth Fund aimed at helping SMEs in the regions, and the Big Society Bank to help funding for third sector organisations.

In addition to this agreement the Government announced yesterday that by increasing the banking levy, we will raise an extra £800m in tax from the banks this year.