UK banks set to swallow bonus tax
As momentum starts to build for a banking bonus tax around Europe, and possibly around the world, it has been revealed that a number of UK banks will take the tax hit themselves, rather than pass this on to staff. It is believed a number of loopholes have been investigated but rather than go head-to-head with the UK authorities the majority of UK banks appear set to retreat and accept "defeat".
This is a situation which has been ongoing for some time now with the UK banking sector in particular a target for European and UK regulators. Only today we saw the UK government suggest that funds from a banking tax should be used to replenish the climate change fund, a fund which was promised some time ago by the European Union. So what next?
Pressure has been building on the UK banking sector for some time and inevitably it seems that the larger companies who dominate the UK will ultimately pay the price. However, historically the banking sector has a very long memory and the UK government will need to be very careful with regards to future manoeuvres because ultimately it will need the support of the UK banking sector to revitalise the UK economy. The UK government may have won this particular battle but it has far from won the war!
Share this..
Related stories
Will the Conservative Party's reorganisation of the Bank of England go far enough?
As more and more people believe that the Conservative party is set to win the next general election all eyes are now turning to the proposed changes within the regulatory system and the return to favour of the Bank of England. Despite the move to reinstate the Bank of England as the focal point of the UK financial regulatory framework there is a feeling that more needs to be done to expand and imp...
Read MoreWhat is a Tobin tax?
After today's comments by the chairman of the FSA (Financial Services Authority) Lord Turner, many people are now wondering exactly what a Tobin tax is. Named after the economist James Tobin this particular style of tax was first discussed in 1971 in relation to implementing a tax charge on all cross-border currency transactions in order to reduce short-term speculation by increasing short-term co...
Read MoreUS government shows the way with GM bailout
The US government, together with its Canadian counterpart, are putting up $30 billion to save the stricken car manufacturer General Motors. When you compare this to the UK government and its unwillingness to invest significant funding into the UK industry they could not be further apart. Quite why the UK government has taken such a negative stance when compared to the US authorities is unclear but...
Read MoreAlistair Darling talks about public sector cuts
Alistair Darling, the Chancellor of the Exchequer, has become involved in what must be one of the most startling U-turns in recent political history. Despite only a few weeks ago Gordon Brown suggesting that public sector investment cuts were not on the cards, despite a growing budget deficit and national debt, the situation has turned full circle now and large scale public sector cuts are certain...
Read MoreIs the UK economic environment pushing more and more people overseas?
Even though there has always been a healthy flow of UK citizens looking to relocate overseas, to countries such as Spain, it appears that the ongoing economic downturn and the ever increasing cost of living in the UK may well be pushing more and more people overseas. There is a feeling that many people are starting to look at a new life overseas because of the economic and political situation and...
Read More