MercoPress. South Atlantic News Agency

Mayor Johnson says top bankers fleeing from London over taxes

Boris Johnson says 9.000 bankers “planning to leave”

Thousands of high-earning bankers will flee London because of the Government's taxation policy, Mayor Boris Johnson has warned. He has written to Chancellor Alistair Darling asking for a meeting to discuss his introduction of a 50p income tax rate for top earners and a temporary 50% levy on banking bonuses over £25,000.

His call comes after US President Barack Obama said he would tax America's biggest banks to recoup the cost of the multi-billion dollar taxpayer bail-out. British companies are expected to be hit with a bill of £900m by Mr Obama, Sky sources say.

Mr Johnson, Mayor of London, says 9,000 bankers are planning to leave London because of the Government's tax policy. Several companies have told him they are rethinking plans to locate, grow or remain in London, including one financial institution where 1,600 staff have asked for reallocations out of the City and another which is considering moving up to 800.

Mr Johnson told the Chancellor: “I believe that the Government's current policy towards financial services is ill-judged.

”You have made unilateral changes to taxation that risk damaging London's competitiveness and its status, alongside New York, as the world's leading financial services centre.

“London becomes a less attractive destination for the globe-trotting, highly-skilled business men and women who can contribute greatly to our economy.

”By allowing this approach to continue, the Government is doing nothing more than fast-tracking the departure of this talent pool out of Britain and into the welcoming arms of our competitors such as New York and Singapore.“

As the Government comes under pressure from the Mayor to ease taxes, the Government is coming under pressure to follow Mr Obama's lead and levy a bail-out tax to help recover the £850bn spent propping up UK banks.

Labour MP John Mann said the new US tax had ”de-legitimized“ claims bankers will flee abroad to avoid levies in the UK. Mr Mann, who sits on the influential Commons Treasury Committee, said: ”I think it is an excellent plan and it opens up the possibility for the rest of the world - including this country - to do something similar”.