No windfall tax planned for banks

The government has no desire to hit banks with a windfall tax, according to
Gordon Brown’s right-hand man.

Economic secretary to the Treasury Bank, Ed Balls, said profits are viewed as
essential to allowing the industry to grow and flourish, and rejected plans to
implement price-setting, which would limit profits.

His comments to the British Bankers’ Association helped allay fears in the
banking industry that a windfall tax would be placed on banks.

The possibility of a windfall tax has been feared ever since Don
Cruickshank’s 2000 report into banks found that they made ‘super-normal’

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