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Tax on banks that pay massive bonuses

By Channel 4 News

Updated on 09 December 2009

The chancellor announces a tax on banks that pay out massive bonuses, to help fund new help for the long-term unemployed. John Sparks reports.

Bankers (Credit: Reuters)

Chancellor Alistair Darling said his new one-off 50 per cent tax on the City fat cats who have been most widely blamed for the financial crisis, would raise more than £0.5bn.

The Conservatives said they would not oppose the levy but there has been an angry reaction from leading bankers, who said it could spark an "exodus of talent" from the UK.


Brendan Barber, general secretary of the TUC and Richard Baron, head of taxation at the Institute of Directors, joined Jon Snow.

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