Finance (No. 2) Bill — House of Commons, 2017-12-18
Topic: Domestic Commerce
Eleanor Fulton Laing (Conservative, Centre-right): With this it will be convenient to discuss the following: Amendment 1, in schedule 9, page 132, line 32, leave out from "in" to end of line 33 and insert "accordance with the provisions of section (bank levy: Part 1 of Schedule 9: pre-commencement requirements)" This amendment paves the way for NC3. New clause 1—Review of operation and effectiveness of bank levy— "(1) Schedule 19 to FA 2011 (bank levy) is amended as follows (2) After paragraph 81, insert— Part 10 Review 82 (1) Within six months of the passing of the Finance Act 2018, the Chancellor of the Exchequer shall undertake a review of the operation and effectiveness of the bank levy (2) The review shall consider in particular— (a) the effectiveness of the levy in reflecting risks to the financial system and the wider UK economy arising from the banking sector, (b) the effectiveness of the levy in encouraging banks to move away from riskier funding models, (c) the revenue effects of the changes to the levy made in Schedule 2 to the Finance (No. 2) Act 2015, (d) the effectiveness of the anti-avoidance provisions in paragraphs 47 and 48 of this Schedule (3) A review shall also compare the effects of the bank levy with those of the bank payroll tax (within the meaning given by Schedule 2 to the Finance Act 2010) in relation to— (a) revenue, and (b) the matters specified in sub-paragraph (2)(a) and (b) (4) A report of the review under this paragraph shall be laid before the House of Commons within one calendar month of its completion."" This new clause requires the Government to carry out a review of the bank levy, including its effectiveness in relation to its stated aims, the revenue effects of the changes made in 2015 and the comparable effectiveness of the bank payroll tax. New clause 2—Public register of entities paying the bank levy and payments made— "(1) Schedule 19 to FA 2011 (bank levy) is amended as follows (2) After paragraph 81, insert— Part 11 Public register of payments 83 (1) It shall be the duty of the Commissioners for Her Majesty’s Revenue and Customs to maintain a public register of groups paying the bank levy and the amounts paid. (2) In relation to each group, the register shall state whether it is— (a) a UK banking group, (b) a building society group, (c) a foreign banking group, or (d) a relevant non-banking group (3) In relation to each group, the register shall state the amount paid in respect of each chargeable period (4) In relation to chargeable periods ending between 28 February 2011 and 31 December 2017, the Commissioners must public the register no later than 31 October 2018 (5) In respect of subsequent chargeable periods, the Commissioners must public the updated register no later than ten months after the end of the chargeable period."" This new clause requires HMRC to prepare a public register of banks paying the bank levy and the amount they have paid. New clause 3—Bank levy: Part 1 of Schedule 9: pre-commencement requirements— "(1) Part 1 of Schedule 9 shall come into force in accordance with the provisions of this section (2) No later than 31 October 2020, the Chancellor of the Exchequer shall lay before the House of Commons an account of the effects of the proposed changes in Part 1 of Schedule 9— (a) on the public revenue, (b) in reflecting risks to the financial system and the wider UK economy arising from the banking sector, and (c) in encouraging banks to move away from riskier funding models (3) Part 1 of Schedule 9 shall have effect in relation to chargeable periods ending on or after 1 January 2021 if, no earlier than 30 November 2020, the House of Commons comes to a resolution to that effect." This new clause requires the Government to provide a separate analysis of the impact of Part 1 of Schedule 9 nearer to the time of proposed implementation in 2021 and to seek the separate agreement of the House of Commons to commencement in the light of that review. New clause 11—Review of effects of bank levy on inclusive growth and equality— "(1) Schedule 19 to FA 2011 (bank levy) is amended as follows (2) After paragraph 81, insert— Part 10 Review on inclusive growth and equality 82 (1) Within six months of the passing of the Finance Act 2018, the Chancellor of the Exchequer shall undertake a review of the bank levy (2) The review shall consider in particular— (a) the effects of the levy on inclusive growth, (b) the impact of the levy on equality (3) A report of the review under this paragraph shall be laid before the House of Commons within one calendar month of its completion."" This new clause requires the Government to carry out a review of the bank levy, including its effects on inclusive growth and inequality.