Implementing the Bank of England Levy: A Consultation on Draft Regulations
The government is consulting on draft secondary legislation to implement the new Bank of England levy, replacing the Cash Ratio Deposit scheme.
On June 7 2022, the government confirmed its intention to proceed with a levy-based arrangement to replace the Cash Ratio Deposit scheme. Doing so ensures that the income received by the Bank is in line with its forecast expenditure, provides increased certainty to the Bank on its overall funding and increased certainty to deposit-takers over the size of their annual contributions.
The government is now consulting on draft legislation that sets out which institutions are required to pay the levy and how the levy is apportioned. This consultation asks for stakeholders’ views on the drafting of that legislation. It should be read in parallel with the Bank of England’s consultation.