New tax on UK bank bonuses?

15 March 2011

The Labour Party in the UK has called for an additional £2 billion ($3.2 billion) tax on the bonuses of bankers.

Shadow chancellor Ed Balls urged the government to approve the measure in next week's budget, but the coalition said it had no intention of implementing further taxes, Reuters reports.

Mr Balls said: "We are asking George Osborne to repeat the bank bonus tax for a second year ... and use the ... money to act now to build homes, to create jobs."

The opposition party is keen to see a repeat of the bank bonus tax, which it previously introduced and subsequently brought in £3.5 billion last year.

However, economic secretary to the Treasury Justine Greening said the government has already reached an agreement to increase lending to businesses and curb bonuses - but no extra tax will be added.

A number of banks in were recently targeted by members of protest group UK Uncut, who demonstrated against tax avoidance, public spending cuts and bonuses.

By Tony Aynsley

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