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Bonuses: 'Banks Face One-Off Tax'

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The news comes as Chancellor Alistair Darling prepares to deliver his Pre-Budget Report tomorrow. Breaking the story on Jeff Randall Live, Sky political correspondent Joey Jones said: "Rather than focussing on individuals, which could get extremely complex, the Chancellor will be doing it on a bank-by-bank basis. "He will be looking to try to identify if a bank has a bonus pool that is deemed to be excessive. If it is, he can impose a one-off levy."

 

In an interview with Jeff Randall earlier in the day Stuart Fraser, head of policy at the City of London Corporation warned that tough new taxes would make the City unattractive to financial high-fliers."This is a culmination of other issues. Twenty five per cent increase in their top rate of tax, the FSA can now tear up a contract of employment if it doesn't like it and now when you do get a bonus the Government can step in and, if you like, put on a super-tax.

 

"That is not going to encourage people to come here and I do genuinely believe that these people are highly talented and they're in global demand. It's like anybody, a lot of people play football but there aren't many Beckhams." It is understood that the chancellor hopes that the move will force through a permanent shift in the culture of the City.

 

The Government is keen to send a clear message as the financial sector prepares to make hefty payouts to its staff. Mr Darling's speech will also have to lay out the Government's plans for halving the country's debt within four years.

 

More:

 

Sky Sources Say Government Will Impose One-off Tax On Banks With Excessive Bonus Pools | Politics | Sky News


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