The UK government on Thursday published draft legislation for a bank levy that will traverse national borders and raise £2.5 billion ($3.9 billion) a year, a day after announcing spending cuts of £81 billion over the next four years.

The levy, which will be permanent, will hit banks with more than £20 billion in liabilities, in a bid to penalise risky funding profiles. "The levy has been designed to encourage less risky funding and complements the wider agenda to improve regulatory standards and