Action and deferred bonuses will be in the base

It is not that we hear much of it in the City, you will talk to it. "The announcement yesterday morning by Chancellor of the Exchequer, Alistair Darling, on the occasion of his report pre-budget in the House of Commons, that the money set aside by the"British and foreign"banks to pay higher than 25,000 bonus books would be taxed at 50, set fire to the City. Some 20,000 bankers would be involved, including 5,000 would gain more than 1 million pounds, according to lord Myners, the Minister responsible for recent estimates by the London financial centre. The aim of the manoeuvre is to encourage banks, through taxation, to strengthen their own capital rather than to pay generous bonus to employees whose institutions were saved from bankruptcy or continue to receive the support of the State. While traders Royal Bank of Scotland (RBS), soon 85 by the British State owned feared to be the only ones to tighten their belts, the measure could put everyone on an equal footing.

The announcement of Alistair Darling, likely, a few months of the elections and then the money will be allocated to unemployed youth, to satisfy the general public but also managers of economic sectors not helped by the public power, caused the fury of the British financial sector.

"Want to resign."

"We are the sacrificial victims, explained a banker questioned by the"Financial Times"." Many worked as a crazy, were unable to see their family to attempt to resolve all the problems of the past: This makes me want to resign. "The British financial sector is concerned, especially since the Walker report which should lead to the revelation by the banks of the number of senior revenue in their staff by slices of 2.5 million and 5 million, that London is no longer able to compete with New York and Hong Kong. "The Government plays with fire, explained the head of a bank capital markets in London." Taxation in the United Kingdom became little predictable than that of countries such as the France. "The measure is in addition to an increase in the marginal tax rate of 40 to 50 from April for the income - all sectors - the highest in the country. Editorials in the Wall Street Journal and the "Financial Times" but felt these days that an exceptional tax for a year was not illogical and would not cause the end of the City.

Bypass restrictions

Immediately, bankers have reflected on the parade against this measure that the State expected only 550 million pounds of tax revenues by relying on the fact that banks will choose to build their capital. They are waiting to see how the bonus deferred and paid in shares will be affected. "The measure will be most likely passed because conservatives showed their support, says Jon Terry, specialist of the remuneration in PricewaterhouseCooper." After a first analysis, the device appears to be ingenious. Q u' they are branches or subsidiaries, foreign banks will also be submitted. Action and deferred bonuses will be in the base. "This does not mean that banks will not seek to mitigate the effects. They are ready, as noted the banker quoted above, to follow suit to Barclays, which has just announced salary increases to circumvent restrictions on bonuses. The risk is with not quite interested in income employees but branches of banks already estimated that the cost of dismissal - approximately 70,000 books - was sufficiently low to justify the increase of the fixed.