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British Chancellor of the Exchequer George Osborne holds Gladstone's red box as he poses for pictures outside 11 Downing Street in London, on June 22, 2010.
British Chancellor of the Exchequer George Osborne holds Gladstone's red box as he poses for pictures outside 11 Downing Street in London, on June 22, 2010.
(BEN STANSALL/AFP/Getty Images)

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U.K. should hit the brakes on bank levy hikes

The U.K. should resist yet another bank levy hike. When the coalition’s annual tax on lenders’ balance sheets was announced in June of 2010, it looked a smart way to raise cash while encouraging banks to slash risky short-term funding. But bankers now expect a third hike in the levy’s rate. This sensible tax risks becoming a joke.