Cable: Britain must introduce banking levy even if other countries don't

3.37.00pm GMT Sat 20th Mar 2010

Responding to Labour and Tory comments on taxing banks, Vince Cable said:

"The other parties seem to be moving onto ground the Liberal Democrats have occupied for some time. Banks must pay for the protection they enjoy from the taxpayer.

"The absolute key is that Britain must do this whether or not other countries act, because Britain is uniquely exposed to the risk of a bank collapse. The ratio between bank assets and GDP is far higher in Britain than in other Western countries.

"The Liberal Democrats have been very specific about how this crucial issue should be tackled, after extensive discussion with the City and others, and it is seriously worrying that both the Conservatives and the Government still do not seem to have worked out a specific proposal - long after the bank collapse and only a few weeks from an election."