From the pre-Budget report, via Reuters:
DARLING – WILL CHARGE BANKS 50 PCT TAX RATE ON STAFF BONUSES OVER £25,000
DARLING – TAX ON BANK BONUSES EXPECTED TO YIELD £550m
And from FT.com:
The Treasury estimates that the move – which comes into immediate effect and runs until April 5 next year – will affect 20,000 bankers. Lord Myners, the City minister, recently estimated that 5,000 bankers earn more than £1m in bonuses.
The windfall tax – which politicians argue is justified, as banks have generated excess profits as a direct, or indirect, result of the bail-out of the banking system – will apply to all banks and building societies, including groups that operate in the UK under a European Union branch system.
Other highlights from the 216 PBR, which you can find here.
Back to Reuters:
Economy:
DARLING – EXPECTS UK GDP TO GROW 1.0-1.5 PCT IN 2010, UNCHANGED FROM EARLIER ESTIMATE
DARLING EXPECTS UK GDP TO GROW 3.5 PCT IN 2011 AND 2012
DARLING – CPI INFLATION WILL RISE FROM 1.5 PCT TO AROUND 3 PCT EARLY 2010 BEFORE FALLING.
Bank Intervention:
DARLING – HAS CUT PROVISION FOR LOSSES FROM FINANCIAL INTERVENTION TO 10 BLN STG FROM 50 BLN.
Borrowing:
DARLING- EXPECTS 178 BLN STG PUBLIC SECTOR NET BORROWING IN 09/10 VS EARLIER 175 BLN
DARLING – EXPECTS 176 BLN STG PUBLIC SECTOR NET BORROWING IN ’10/11 VS EARLIER 173 BLN FORECAST.
DARLING – EXPECTS 140 BLN STG PUBLIC SECTOR NET BORROWING IN ’11/12, 117 BLN STG IN 2012/13
DARLING – EXPECTS 2013/14 PUBLIC BORROWING TO BE 96 BLN STG, 82 BLN STG IN 2014/15
DARLING – EXPECTS NET DEBT TO REACH 56 PCT OF GDP 2009/10, PEAKING AT 78 PCT IN 2014/15
Related links:
PBR preview, bankers’ bonus edition – FT Alphaville
Schools, health and police spared in PBR – FT
What to expect from the chancellor’s speech – FT