Cameron and Letwin plotted to cap bank tax

The Sunday Times claim a leaked document has revealed that David Cameron and Oliver Letwin wanted to “cap taxes for the banks”.

According to the leaked memo¬†Letwin endorsed Cameron’s plans for an “aggregated City tax take” which would have prevented the government from increasing the banking levy.

The cap on the banking levy was proposed in the early days of the coalition, but was blocked by the Liberal Democrats.

The memo reveals that Letwin suggested that a cap on taxes should have started with a “small club” of high street banks belonging to the British Bankers Association.

“If this worked, we could move on to the hedge funds”, Letwin added.

When asked¬†about the bank tax proposal yesterday Letwin claimed to have “absolutely no recollection”.