Budget 2010: Bank bonus tax to fund small business scheme

Measures to tax bank bonuses 50% have raised £2bn for the Treasury, part of which will be spent on a scheme to help small businesses thrive.

In today's Budget speech, Alistair Darling said cash from the tax would help fund the scheme along with a reallocation of money from existing budgets. The Chancellor unveiled the 50% tax measure in December's Pre-Budget Report (PBR). While the Government stopped short of banning all bonuses, Darling added those opting to receive their payouts were still taxed at the highest rate of income tax. "We can not continue with a situation where banks are rewarded for creating excessive risk but taxpayers foot the bill when things go wrong," he said. Darling also pledged to get "all ...