UK joins G20 push for world levy on banks

By Sumeet Desai and Huw Jones

ST ANDREWS (Reuters) - Britain threw its weight on Saturday behind proposals to impose a global levy on banks to fund future bailouts and called on the G20 to work toward a $100 billion deal to meet the cost of climate change.

A draft end-of-meeting statement from the group of rich and developing nations obtained by Reuters said the economy had improved but cautioned recovery was still dependent on the official support given to it since the financial crisis erupted last year.

Policymakers also committed to a detailed timetable to launch a mutual-assessment process of their economies that could see countries set out national and regional policy frameworks by the end of January 2010.

"To restore the global economy and financial system to health, we agreed to maintain support for the recovery until it is assured," according to the draft, read to Reuters by a delegation source. It also warned that high unemployment remained a major concern.

British Prime Minister Gordon Brown urged the third meeting of the group's finance ministers and central bankers this year -- being held in St Andrews, Scotland -- to consider the bank bailout fund urgently.

France and Germany have for some time been in favour of looking at a levy but London with its huge financial centre has always resisted.

Brown's Labour government, however, is trailing in opinion polls before an election expected in May and footing a multi-billion dollar bill for bailing out the banks at a time of huge public anger against bankers for their role in the crisis.

"We should discuss whether we need a better economic and social contract to reflect the global responsibilities of financial institutions to society," Brown said.