PracticeConsultingBanks’ penalty ‘hit list’ slammed

Banks' penalty 'hit list' slammed

Tory and Liberal Democrat MPs have attacked the Competition Commission for drawing up a list of penalties for banks who have abused monopoly power - before finding any of them guilty.

The ‘hit list’ includes the threat of a windfall tax on bank profits, which the Commission issued before completing its inquiry on banking services to the SME sector.

Shadow trade and industry secretary David Heathcoat-Amory said he was ‘astonished’ the Commission should trawl possible punishments before finding any banks guilty of operating against the public interest.

The accountant MP said: ‘Some of these ideas are either impractical or dangerous.’

‘A profits tax would do nothing to help small businesses. It would simply swell the coffers of the Treasury,’ he said.

And Liberal Democrat small business spokesman Brian Cotter said he was ‘surprised the Commission have drawn up that particular recommendation and are talking about a tax on profits at this stage’.

He added: ‘What I would be looking for from the banks would be a new code of banking practice towards small businesses.’

Links

Loans are still available – but banks aren’t lending money for nothing

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer