March, 22, 2010

Bankers already upset by the government’s 50pc tax on bonuses of more than £25,000, have strongly criticised an industry “pollution tax” set to be unveiled in Wednesday’s Budget that would bring in tens of billions of pounds.Sources at two of Britain's largest banks said they were “deeply worried” at the prospect of the tax coming a day after Opposition leader David Cameron committed the Conservatives to imposing a new banking industry levy.

They need to be very careful not to do anything unilaterally that will harm the financial services industry,” said one source.“As ever with these things, you feel people in Paris and Frankfurt will be punching the air and saying ‘yes’.”The pressure on politicians to bring in new taxes on the financial services industry has grown in the aftermath of the financial crisis, which led the government to hand banks hundreds of billions of pounds in direct and indirect support.

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