Q&A: Bank levy explained

By Laurence Knight
Business reporter, BBC News

UK chancellor George Osborne in the Canary Wharf financial district of London
Image caption,
The chancellor wants banks to pay their "fair share"

The government says it will increase the levy on banks from 0.078% to 0.088% from 1 January.

So what is the levy? What's really at stake? And why raise the rate now?

Image caption,
Before the financial crisis, bank runs were considered a thing of the past

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