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The financial sector has paid out twice as much in bonuses since the crash than it has paid in corporation tax, the TUC says today (Tuesday) as Barclays announces its bonus pool for 2013/14.

The financial sector has paid out twice as much in bonuses since the crash than it has paid in corporation tax, the TUC says today (Tuesday) as Barclays announces its bonus pool for 2013/14.

Figures published by HM Revenue & Customs show that between 2008-09 and 2012-13, the finance sector contributed £32.4bn in corporation tax.

However, the sector’s corporation tax contribution is dwarfed by the £67.6bn paid out in bonuses over the same period. A recent study by the Robin Hood Tax campaign showed that the post-crash City bonus pool is expected to top £80bn after the latest round of bonuses due over the coming weeks.

It is scandalous that while people across Britain have paid for a recession caused by the City through, job losses, pay freezes and cuts to vital public services, the financial sector is still able to pay out billions in bonuses, says the TUC.

The TUC believes that the City’s post-crash bonus pool – which is twice as big as its corporation tax bill – shows that the banks have not been held accountable for the recession, nor have they learnt any lessons from the damage they caused.

The TUC believes that all bonuses over £250,000 should be liable for corporation tax to discourage the City’s mega-bonus culture. This would mean that taxpayers would benefit if banks chose to award mega bonuses to their staff.

TUC General Secretary Frances O’Grady said: “People have had to pay for the recession through job losses, falls in pay and cuts in vital public services.

“But the very people in the City who caused the crash have got away scot-free, and instead been rewarded with tens of billions of pounds in bonuses.

“Today Barclays has stuck two fingers up to hard-pressed families across Britain by announcing another multi-billion pound bonus pool.

“But rather than tackle the damaging City bonus culture, the Chancellor has been to Brussels to defend their greed.

“The government must prioritise the needs of struggling families and small businesses continuing to be starved of credit over the wealth of their City chums by clamping down on mega bonuses and ensuring big business starts to pay its fair share of tax.”

NOTES TO EDITORS:

Financial year

Corporation tax (£bn)

Bonuses (£bn)

2008-09

7.7

12

2009-10

5.6

13.5

2010-11

7.2

14.7

2011-12

5.4

13.4

2012-13

6.5

14.0

Total

32.4

67.6

Sources:

Bonus figures www.ons.gov.uk/ons/publications/re-reference-tables.html?edition=tcm%3A77-317190

Corporation tax (page 24 of HMRC report) http://www.hmrc.gov.uk/statistics/ct-receipts/corporation-tax-statistics.pdf

- The TUC is organising Fair Pay Fortnight from Monday 24 March to Sunday 6 April. It will be a series of events across England and Wales to raise awareness about falling living standards. www.fairpayfortnight.org

- All TUC press releases can be found at www.tuc.org.uk

- Follow the TUC on Twitter: @tucnews

Contacts:

Media enquiries:
Liz Chinchen   T: 020 7467 1248    M: 07778 158175    E: media@tuc.org.uk
Rob Holdsworth    T: 020 7467 1372    M: 07717 531150     E: rholdsworth@tuc.org.uk
Elly Gibson   T: 020 7467 1337    M: 07900 910624     E: egibson@tuc.org.uk