The chairman of the Treasury Committee, Andrew Tyrie, has said hurdles set out for banks entering the market are unreasonable – and cause consumers and small businesses to lose out due to a lack of competition.
A series of quarterly meetings with the Treasury’s director of financial services have begun, with the Funding for Lending scheme, capital requirements and banking surcharges on the agenda.
Chancellor George Osborne has been under growing pressure to reconsider his tax on banks, amid warnings that it penalises challenger banks. As part of the argument, EY has revealed that the tax-take would “be at least double” the Treasury’s estimate.
HSBC bosses postponed a review of moving headquarters out of London in 2012 until the UK's "regulatory environment was clearer". The rise in tax ahead of the general election has seen the bank's employers raise the question of whether to stay in Britain once more.