Bank reward taxation raises 2bn

The Governments 50% bank reward taxation has already lifted �2 billion for the UK open purse, the Chancellor suggested today.

Alistair Darling pronounced the asset taxintroduced on bank bonuses on top of �25,000had lifted far some-more than the �550 million creatively expected.

He reiterated await for a tellurian levy on the promissory note sector, but pronounced the UK should not go it alone in introducing a new bank tax.

In pledging to redeem income split out by taxpayers to assistance the promissory note sector, Mr Darling combined that some-more than �8 billion in fees and charges had been perceived from banks in lapse for await during the monetary crisis.

Cash lifted by the one-off bank reward taxation will go towards a �2.5 billion expansion package, voiced today, to assistance small businesses.

The Government introduced the taxation on all bonuses on top of �25,000 awarded in between Dec 9 last year and Apr 5 this year.

It was suggested in the new annual formula stating deteriorate that the big 4 banks alone had generated some-more than �650 million underneath the levy.

HSBC pronounced on releasing annual total that it will compensate �232 million on the tax, whilst Barclays is profitable �225 million and part-nationalised Royal Bank of Scotland is balance a �208 million reward bill.

Revenues from the taxation have additionally been increased by the likes of general banks such as Goldman Sachs and JP Morgan that have poignant UK workforces.

Mr Darling combined that the Government will get behind the income outlayed on bailing out RBS, Lloyds Banking Group and Northern Rock.

He said: We will sell the shares in RBS, Lloyds and Northern Rock in a approach that maximises earnings to the taxpayer.

We intend to get taxpayers" income back, he added.

The promissory note zone is duration confronting a serve tellurian tax, that is being worked on at an general level.

Mr Darling called for the levy to be brought brazen fast to residence the huge amounts of open money pumped in to the zone around the world, whilst he additionally urged general reforms on the volume of collateral pot hold by banks to forestall destiny bail- outs.

We cannot go on with a incident where the banks are rewarded for receiving extreme risk and the taxpayer foots the bill, pronounced Mr Darling.

But any bank taxation contingency be finished on a mutual general basement to forestall the UKs monetary centre being disadvantaged, he stressed.

Going it alone, as someone suggested, would cost thousands of jobs, not only in London, but additionally the total country, warned Mr Darling.

However, he done it transparent that penalties contingency not ravage the zone and the competitiveness: There can be no lapse to commercial operation as common for the banks. But we additionally contingency recollect that their success is critical not only for the tellurian economy but for Britains future.