City bonuses on par with previous years
Bonus pot to be similar to last year, raising hope of tax receipt boost for Treasury
Most City workers have received bonuses equal to or better than previous
years in 2007, raising hopes in the Treasury that tax receipts will be higher
than initially expected.
A survey by Morgan McKinley of workers in the City earning between £18,000
and £150,000 found that 71% of respondents had received a bonus pot similar to
or larger than in 2007. Middle and back office workers were also upbeat, with
80% saying they had received a similar or higher bonus than last year.
‘Putting the impact of the credit crunch aside, 2007 was still a strong year
for financial services and for the majority, bonus payouts in middle and back
office functions appear to reflect this,’ Robert Thesiger, chief executive of
Morgan McKinley’s parent company, Imprint Plc, said.
The figures will be pored over by chancellor Alistair Darling ahead of his
March 12 Budget. Think tanks have warned that the liquidity freeze will hit tax
revenues and affect budgets, but the bonus figures may provide Darling with some
hope.
Further reading:
Darling fixes Budget date for 12 March
Think tank warns govt risks breaking debt
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