Labour criticises '˜billions for banks'

Labour claimed Mr Hammond’s decision to stick with cuts to the bank levy made by his predecessor, George Osborne, amounted to a huge “tax giveaway”.

Mr Osborne cut the levy after last year’s General Election in a move widely seen as an effort to head off threats by some banks to move overseas.

The cut reduced the amount the Exchequer will receive from the bank levy by 2020 from £18.5bn to £13.1bn.

Labour argued the move could not be justified when bank balance sheets are forecast to grow and Mr Hammond should have raised the levy in his Autumn Statement.

Shadow Chancellor John McDonnell said: “Philip Hammond tried to sneak out the fact that he has continued this cut in the bank levy, which will provide big banks with a tax giveaway larger than under even George Osborne.

“The fact that we are seeing such a large handout to the biggest banks in our country at a time when we are seeing cuts to our schools, NHS and a funding crisis in our care service is truly shameful.

“Labour wants to see a fair and progressive tax system in which everyone pays their fair share, in order to build a country where no-one and no community is left behind.”

Labour has repeatedly criticised the Government for giving tax breaks to business.

Earlier this week, Mr McDonnell called on Mr Hammond to reverse cuts to corporation tax arguing the money raised would pay for thousands of additional nurses, police officers and teachers.