Why Osborne might give ground on bank tax

Challenger banks claim they will be disproportionately hit by new profit surcharge

George Osborne - EU
(Image credit: Eric Piermont/Getty)

So-called 'challenger' banks seeking to break the dominance of the big high street brands could yet win concessions over a controversial new tax announced in the summer Budget, which they claim will disproportionately hit smaller lenders.

The Guardian reports that Labour MP John Mann, who sits on the influential Treasury Select Committee, has tabled an amendment to the new rules excluding any bank with less than £25bn in assets from the new charge. This will effectively cover all new entrants, including the likes of Metro Bank, TSB and One Savings Bank, as well as most building societies.

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