On 25 January 2024, HM Treasury (HMT) published a summary of responses to its consultation on draft regulations to implement the Bank of England (BoE) levy, along with next steps. In parallel, the BoE published a Policy Statement providing feedback to its consultation on its proposed Levy Framework Document.
The Government confirmed in June 2022 its intention to proceed with a levy-based arrangement to replace the Cash Ratio Deposit (CRD) scheme. Doing so is intended to ensure that the income received by the BoE is in line with its forecast expenditure, provide increased certainty to the BoE on its overall funding and increased certainty to deposit-takers over the size of their annual contributions.
In its consultation, published in November 2023, HMT set out draft legislation specifying which institutions are required to pay the levy and how the levy is apportioned. HMT confirms that it has considered the two responses received to the consultation and no questions were raised in relation to the drafting. The Government has therefore laid the legislation – the Bank of England Levy (Amount of Levy Payable) Regulations 2024 – and , subject to Parliamentary approval, will progress with commencing the BoE Levy.
The BoE consultation set out the proposed Framework Document for the BoE levy, which explains how the annual levy will be charged and how it will operate. In its response, the BoE confirms that it has considered the responses received to the consultation and, subject to Parliamentary approval, will progress with commencing the BoE Levy.