The British Bankers' Association said that the levy "adversely affects the competitive landscape and the UK's position as a financial centrebank", noting that few other countries had a levy at all.
The charge is currently based based on taking 0.156% of a lender's liabilities, meaning that banks must pay regardless of whether or not they make a profit or loss.
A BBA spokesperson has said:
"The bank levy rate has been increased 8 times since the levy was first introduced during the 2010 budget, and many of those increases have been implemented with minimal advanced notice - the frequency of the rate change has not resulted in a stable tax environment for the banking industry and is inconsistent with the Government's desire for the UK to have a competitive, stable and predictable tax regime for business."
