Unions attack bonuses and say tax changes could raise £1.7bn

UNION leaders have stepped up their attack on bankers’ bonuses by claiming that changes to the tax system could raise £1.7 billion a year.

The TUC said corporation tax relief for pay and bonuses worth more than ten times average earnings should end in the banking and financial services sector.

Stopping relief on earnings of more than £262,000 would raise £1.7 billion a year which would pay back the deficit created by the financial crash, said the union.

General secretary Brendan Barber said: “Irresponsible banks played the biggest part in causing the crash.

“Scrapping corporation tax relief for earnings over £262,000 will help pay off the deficit and tackle the growing pay divide that has seen a tiny minority of super-rich individuals receive inflation and performance-busting pay rises.”

“The chancellor should use his budget to end the privileged status that the financial services sector enjoys.”