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Bank bonus tax criticised


A business advisory firm has criticised the chancellor Alistair Darling for introducing a tax on bankers’ bonuses in yesterday’s Pre-Budget Report.

BDO has argued that the move - which levies a 50 per cent charge against bonuses over £25,000 - could have negative long-term implications for the financial services industry in the UK.

It said that the decision could deter highly-paid executives from moving to London, with them instead opting for alternate destinations such as Paris, Frankfurt and Switzerland, where tax regulations are more favourable.

Stating that the move is ’bad news’ for the UK, BDO claimed that the £550 million that the Treasury expects to gain from the tax may not be enough to counter-balance the potential impact it will have further down the line.

During his speech to the House of Commons yesterday, the chancellor said that public spending this year is likely to be £3 billion higher than previously expected at £178 billion.ADNFCR-2318-ID-19506431-ADNFCR

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