Tax raid on banks planned by ministers

Ministers are drawing up plans for a tax raid on Britain’s banks worth hundreds of millions of pounds, The Sunday Telegraph has learned.

The radical move, being considered as a way of forcing banks to pay a price for the taxpayer-funded bail-out of the financial system, could include a one-off “windfall” tax on profits.

Banks could also be forced to pay more corporation tax by curbing the system that allows them to offset their losses against tax over a number of years.

Cabinet ministers and senior Downing Street officials want Alistair Darling, the Chancellor, to unveil tax moves against banks in his Pre-Budget Report (PBR), which will be announced to Parliament within six weeks.

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