Lower city bonuses mean lower tax revenues

August 30, 2007 11:40 AM

The Telegraph reports today:


"Alistair Darling could face a multi-billion pound tax shortfall in the coming year as the City's market misery takes its toll on bonuses and bank profits.

"The Treasury could miss out on as much as £2bn in tax revenues if the coming round of City bonuses disappoints, according to preliminary estimates by The Daily Telegraph and financial experts. The hit will be even worse if the current bout of instability persists for many more weeks, spelling deep trouble for the new Chancellor, analysts said. The news comes only days after it emerged that City bonuses hit a new peak of £14bn in the past year.
"


When politicians such as Peter Hain and other criticise the scale of City bonuses, they should remember just how much the Treasury receives in tax from these payouts.

The Telegraph reports today:


"Alistair Darling could face a multi-billion pound tax shortfall in the coming year as the City's market misery takes its toll on bonuses and bank profits.

"The Treasury could miss out on as much as £2bn in tax revenues if the coming round of City bonuses disappoints, according to preliminary estimates by The Daily Telegraph and financial experts. The hit will be even worse if the current bout of instability persists for many more weeks, spelling deep trouble for the new Chancellor, analysts said. The news comes only days after it emerged that City bonuses hit a new peak of £14bn in the past year.
"


When politicians such as Peter Hain and other criticise the scale of City bonuses, they should remember just how much the Treasury receives in tax from these payouts.

Latest Blogs:

TaxPayers' Alliance Icon

Windfall fail

10:08 AM 13, Aug 2018 Duncan Simpson

TaxPayers' Alliance Icon

Education spending and teachers' pay

7:10 PM 16, Jun 2018 The TaxPayers' Alliance

TaxPayers' Alliance Icon

But that wasn't real socialism...

4:04 PM 23, May 2018 Matt Gillow

TaxPayers' Alliance Icon

Food would be cheaper outside the customs union

4:20 PM 14, May 2018 James Price