Labour has called on ministers to impose tax on bank bonuses in the in the wake of the latest scandals to hit the City. The Government was urged to impose the tax in addition to its existing bank levy and use the funds to finance job opportunities to save youngsters from the dole queue.
Shadow Treasury minister Catherine McKinnell said the plan would make the banks "pay their fair share in tax instead of letting them get away with it". Ms McKinnell said:
Barclays, and who knows how many other banks now under investigation, broke the rules to make a profit and put global economic stability at risk.
All of these actions of the banks are totally unacceptable. The banks have been taking without giving back. The Government can take action now to put that right.
The money raised would create 100,000 jobs for young people, she added.
The Government and Labour clash over the scale of inquiry into the banking scandal. Labour want a full, independent one.
The new government inquiry will look both into the culture of banking and into the setting of Libor rates
The Chancellor's team says his announcement to the Commons will "shoot Labour's fox."