Straightforward approach through raid on bankers’ bonuses

I get the impression that going after bankers’ bonuses through national insurance is not the option the Treasury is going for in the PBR.

The approach will be a more straightforward though unprecedented raid on one group of workers – employees of banks trading in the UK who get chunky bonuses.

There’s a confidence in the Treasury – moot point whether it is well-founded or not – that as this is an ambush on bankers’ bonuses they won’t have had time to hide them, the bankers’ contracts will make it fairly clear what is bonus and what isn’t.

It’s a one off, one year only tax so, the Treasury thinks, it’ll be too late by the time the banks’ lawyers get busy.

Rubbish, say City folk. This will end up in court.

Tonight government lawyers and hired hands are trying to make this one off tax watertight and they have a big challenge on their hands.