Alistair Darling

The government announced a one-off tax on bankers' bonuses Wednesday, as it admitted facing a sharper recession and higher state borrowing ahead of elections next year which the government is tipped to lose. Chancellor of the Exchequer Alistair Darling unveiled the voter-friendly plan in a keenly-awaited budget statement to parliament as Britain, stuck in its longest recession on record, gears up for national polls due by mid-2010. With Prime Minister Gordon Brown's Labour Party expected to lose the upcoming general election to the Conservatives, the unveiling of a tax on bankers' bonuses was seen as an attempt to win votes. "The task today is ... Read Full Story

The government will make a budget statement on Wednesday to help fix public finances and lift its popularity before next year's election, amid reports of a windfall tax on bankers' bonuses. Chancellor of the Exchequer Alistair Darling unveils his latest taxation and spending plans in the pre-budget report -- a curtain-raiser to the main budget in March or April -- before parliament at 1230 GMT. Reports suggest Darling will clobber bankers amid deep public anger over the return of big bonuses in a sector that was bailed out by the taxpayer -- and blamed for the global financial crisis and subsequent worldwide recession. Business ... Read Full Story

Newspapers have accused Prime Minister Gordon Brown's government of failing to take tough decisions to slash the massive public deficit, after unveiling its budget statement. Chancellor Alistair Darling ducked the measures needed "to pull Britain back from the brink of bankruptcy" for fear of upsetting voters ahead of the general election, newspapers said. Darling on Wednesday unveiled his keenly-awaited statement to parliament as the nation, mired in its longest recession on record, gears up for national polls due by mid-2010 that Labour is widely tipped to lose. With headlines of "Pain delayed" and "Darling ducks tough decisions," they said the government needed to rein ... Read Full Story

Prime Minister Gordon Brown pledged Monday to axe 3.0 billion pounds from public spending in extra savings to help cut the nation's debt. The premier, whose Labour government will announce taxation and spending plans in a pre-budget report Wednesday, outlined proposals to help achieve his aim of halving the public deficit over the next four years. Brown, tipped to lose next year's general election at the hands of the Conservatives, also warned that a "culture of excess" must change in the public sector. The government now hopes to save a total of 12 billion pounds through efficiency savings over the next four years. That ... Read Full Story

Chancellor of the Exchequer Alistair Darling has warned the EU's new financial overseer against meddling with London's banking hub, saying mis-calculated reforms could drive financial services out of Europe. Darling said on Wednesday although financial reform was imperative in the wake of the global credit crisis, "nothing could be more self-defeating" than getting it wrong. "Get it wrong and we risk losing business to less regulated jurisdictions," Darling said, writing in the Times newspaper. France last week secured control of the prized European Union post overseeing banks and other financial services, despite staunch British resistance to EU efforts to regulate the City of London. ... Read Full Story