Bankers set for exodus in case of higher bonus taxes

Almost half of the City's bankers plan to flee abroad or switch jobs if Chancellor George Osborne hits them with further bonus taxes in his emergency Budget next week, according to a survey published today.

More than 420 bankers in the capital were polled on their expectations for Tuesday's Budget, and 44% said any increase on bonus taxes above 50% would lead them to seek out work abroad or in another industry.

Only a quarter said they definitely would not move.

A third of the bankers, who were surveyed by finance career site eFinancialCareers.com, said a supertax on bank profits or a tax on bonuses "would undermine the City of London's position as a leading financial centre". A fifth warned it would drive away international firms.

The top destinations of bankers who are job-seeking abroad are Hong Kong, Shanghai, Dubai, Zurich and Geneva.

James Bennett, managing director of eFinancialCareers.com, said: "The coalition Government needs to be extremely sensitive on how it handles the interlinked issues of sovereign debt reduction and banking industry reform.

"If the moves are too abrupt or heavy handed, London faces the real threat of a talent exit.

"Only 54% of those working in the City and participating in our survey were of British nationality. Many are highly mobile."