So Osborne has given the banks an obligation ultimatum. Osborne somehow feels that if he adds to the previous political rhetoric about bankers and their unfair practices, they will somehow listen to him. He fails to realise that to stop the bankers from cashing in on taxpayers’ money, real legislation and action needs to happen. Not just the recent levy implemented either, which actually when coupled with the decrease in corporation tax will result in bankers mustering a nice profit instead of a loss.
Instead, there needs to be radical reform to banking practices to help dampen the current economic unfairness of the banking system. The banking system is morally bankrupt, if we were to instil a robin hood tax however, the proceeds from the tax (which would be relatively small-scale for the banks) could be used for socially, environmentally and economically sustainable policies.
However, there are rightful doubts around the implementation possibilities of such a tax. For it to work effectively it would be better to have international backing, which (excuse the pun) we can’t bank upon. Nevertheless, the scares that it would somehow cause a race to the bottom is unfounded and based upon pretty rubbish evidence. You only have to consider Sweden who hiked up their taxes and actually saw investment rise, when they were trying to eradicate their debt.
Osborne can talk till the cows come home, but this only repeats and continues the mistakes of the previous government. However, ‘democracy’ as it is, and ideology as the real driving force, little will be done to really change things.