New corporate banking tax a 'possibility'

Business secretary Vince Cable has described a new tax on the corporate banking sector as a "possibility".

Speaking to the BBC ahead of today's (20th December) scheduled meeting between senior banking figures and the coalition government, Mr Cable said "robust action" was needed to encourage the banks to exercise restraint over bonuses.

Rules requiring a greater level of disclosure over pay could also be introduced, he continued, adding he would not be "bullied" by financial institutions threatening to move their operations elsewhere.

The Liberal Democrat MP for Twickenham went onto stress the government was united in its calls for the banks to show social responsibility at a time when many people are out of work.

"If they don't behave, if they don't take account of their wider responsibilities, the government has as a possibility some form of taxation," he remarked.

Chancellor of the exchequer George Osborne's return from New York was delayed because of the bad weather, meaning the summit has now been postponed.  ADNFCR-2318-ID-800301191-ADNFCR