Britain’s former chancellor of the exchequer admitted yesterday that the UK’s controversial supertax on bankers’ bonuses failed to change the sector’s behaviour over pay as “imaginative” financiers devised ways to avoid it.
The 50 per cent tax on bonuses of more than £25,000 ($38,700) was deeply unpopular in the City of London amid complaints that the industry would haemorrhage talent overseas.
Alistair Darling, who introduced the now-expired levy last year amid an outcry over bank pay, said he thought it was unlikely the tax would be reinstated by the current Conservative-led coalition government.
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