Wednesday, 9 December 2009

Square Mile Red Alert: 68% Tax on Bonuses Over 25K

Well, if they want The City to leave this is the way to do it.

If this is not repealed you can say goodbye to London as a leading financial centre. People can whine and complain all they want about the amount of money bankers make, but the truth is that workers in the City contribute millions of pounds to London's (and Britain's) economy, on top of the large amount of taxes they already pay. Alisdair Darling should be careful what he wishes for.

The Financial Times (link above):
“I can’t tell you how many people have called me from London asking to move,” a senior Wall Street banker said. “The question all the banks have now is: who the hell wants to be in the UK? Some businesses will definitely leave.”
One investment banking chief said the “contract between government and business is broken”, warning that up to 40 per cent of the City’s activities were “mobile” and would move overseas to more welcoming jurisdictions, such as Switzerland and the US.
Angela Knight, chief executive of the British Bankers Association, said: “Viewed from abroad, London may well look now like a significantly less attractive place to build a business.”

SMW already knows a few people who have resigned recently because of conditions in the UK, this number is certain to grow. Many expats here will tell you the only reason they have stayed "this long" is the money - and with that gone you can be sure all these hard-working productive people will take themselves and their money elsewhere.