City bonuses ‘targeted in PBR’

The tax rate, higher than the top level of income tax, would apply on bonuses above £20,000, according to the BBC’s Robert Peston.

Given that banks traditionally shell out billions every year on bonuses for high-flying execs, the move is likely to rock the industry at a time when it is already at odds with the chancellor.

The news is expected to come in today’s pre-Budget report, unveiled by Darling from 12.30pm today. He hopes it will be well received by the public, although the City has accused him of being ‘popularist’.

Entrepreneurs may well be relieved that the headline tax increase today will not affect them. But with the devil often hiding in the detail, there could be some nasty shocks yet.

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