On 22 April 2016, the House of Commons Treasury Select Committee published correspondence with the Competition and Markets Authority (CMA) highlighting the Committee's concerns over the banking tax surcharge. This follows on from previous correspondence between the CMA and Andrew Tyrie MP, Chairman of the Treasury Select Committee, in November 2015. In the previous correspondence, Mr Tyrie wrote to the CMA in response to a letter in which several major challenger banks disputed the CMA’s conclusion that the new tax surcharge was not a barrier to entry and expansion in the banking market.
In his letter, Mr Tyrie affirms that tax forms a significant part of the wider competition problem and that ‘it now falls to the CMA to ensure there is a level playing field for all market participants.’
The letter concludes by saying that ‘the Committee remains deeply concerned about the current inadequate level of competition in banking’ and that ‘the Committee will scrutinise the CMA's conclusions, on both the banking surcharge and of its market study more broadly, in due course’.