Bankers 'offer £2bn in exchange for dropping bonus tax'

Executives in senior banking jobs have come up with a plan they believe will help them get rid of Alistair Darling's planned bonus tax, according to a media report.

A team of top bankers has proposed that the banking sector will raise £2 billion for the Treasury via voluntary contributions if Mr Darling drops the proposed levy, reports the Guardian.

In his Pre-Budget Report, the chancellor estimated the tax could bring about a windfall of £550 million but experts have said this may be an underestimate.

People in banking jobs have reacted with fury to the plans, stating that the move may damage London's position as one of the world's top financial centres.

Earlier this week, Andy Haldane, the Bank of England's executive director for financial stability, told the BBC that it may not be a bad thing for the UK if some City firms move abroad in protest at the tax.

"If some of that were to migrate overseas that would be unfortunate but given the costs of carrying that financial system around, it may be a price worth paying," he said.

Updated: 21 December 2009.
Categories: banking-and-financial-services, market-and-industry-news.