UK planned tax on bankers criticised

The BBC has learned that the British Government is preparing to levy a one off windfall tax on investment bankers based in the UK.

But there are concerns from some in the financial industy that the plan could undermine London's status as one of the world's most important financial centres.

There's no doubt levying a tax on bankers will be popular as many people blame the high-flying risk takers in banks for causing the financial crisis.

Many banks are still only in business thanks to injections of billions of dollars of taxpayers' money, so the prospect of bankers who made costly mistakes getting bonuses is questionable.

It is thought the tax will also be levied on bonuses paid to executives working at foreign banks.That's a worry for the City of London which fears it could undermine London's position as one of the world's major financial centres.

Stuart Fraser is the head of policy making for the City of London Corporation.

First broadcast on World Business News