Bank balance

George Osborne treated the banking sector relatively leniently in the emergency Budget with the imposition of a 2bn levy – it could have been a lot higher. The Chancellor also deserves credit for recognising that a separate balance sheet levy should only be introduced in conjunction with other countries.

While many would like to see the banks penalised for the untold damage that they have done to so many lives, Mr Osborne has to take account of wider considerations and, in particular, the amount that the industry pays through corporation tax. If the major banks relocate to Europe, this revenue will be lost – and the Government's cuts will have to become even more stringent as a consequence.

Yet the banks also need to remember a fundamental point as they look to rebalance their books: the argument in favour of levies would not be so powerful if they had conducted their finances more honourably – and not sought to withdraw credit from a string of viable companies. While it might have helped the banks to achieve their objectives, their intransigence has had serious knock-on effects for the future of many businesses – and imperilled many jobs as a result.

As such, bank bosses need to remember that public, and social, responsibility is the price that they have to pay in return for the public's bailout – and that this will always be the case while the industry continues to depend upon state support.