Miliband unveils payday lender plan

Press Association
Ed Miliband
Ed Miliband

A Labour government would impose a new tax on payday lenders to fund a multimillion-pound increase in public support for low-cost alternatives, such as credit unions, Ed Miliband announced today.

Details of the rates at which the levy would be imposed on the profits of companies like Wonga have not yet been announced, but Labour said it aims to raise enough cash to double the £13 million currently provided by the Government each year to fund the expansion of credit unions.