The Independent Commission on Banking headed by Sir John Vickers published its final report on the future of UK banking last month almost three years to the day of the demise of Lehman Brothers.
While the report’s focus is on enhanced bank loss absorbency (equity and loss-absorbing debt well in excess of Basel III demands) and structural reform (ring-fencing retail operations) the Commission’s proposals are likely also to influence future financial sector taxation.
The overarching premise of the report is that risks associated with banking ought to be borne privately – not by the Exchequer.
This has become a fixation of the Treasury in recent years; look only to last year’s...
