Some banks made large losses as a result of the financial crisis and under the rules we inherited, these losses are now being used by banks to eliminate corporation tax payments on current profits.
I recently met with a Bath-based digital company that has expanded as a result of funding found through Libor fines; a fine that was set up under the last Parliament.
As a result, some banks would not be paying tax for 15 or 20 years, which is totally unacceptable. The banks got public support in the crisis and I believe they should now support the public in the recovery.
I am therefore pleased that since April 2015 the amount of banks' profits that can be offset by carried forward losses is restricted to 50 per cent, increasing their contribution to public finances through their tax payments.
In addition, I am pleased that the fines collected from five banks for failures in foreign exchange trading will be used to create a £1 billion fund for advanced care in GP practices in England. This will help pay for the modern premises and technology that will give patients access to advanced care, such as chemotherapy and dialysis, in their local communities.
Moreover, I am glad that banks will be stopped from deducting from corporation tax the compensation they make to customers for products they have been mis-sold.