Bank bonus tax 'has put London at risk'

London’s position as one of the most important global financial centres is under threat due to the new tax on bank bonuses, the head of Barclays has argued.

Speaking to the BBC, John Varley said the decision will put the English capital at a disadvantage when compared to its counterparts around the world.

He argued that its position will be ’damaged’ by the move to implement a 50 per cent tax on big bonuses, stating that all banks should ’be able to compete on a level playing field’.

’The United Kingdom and France have gone in that direction [the bonus tax] and I lament that,’ Mr Varley told the news source.

Implementing the levy has also resulted in an unpredictable tax environment in the country, he argued.

Chancellor Alistair Darling said in his Pre-Budget report that applying a 50 per cent tax to financial sector bonuses over £25,000 will help the government to recoup some of the spending it has had to carry out due to the financial crisis.ADNFCR-2318-ID-19524168-ADNFCR