UK investment bank Rothschild is weighing up paying staff bonuses early, in order to avoid new taxes that could be brought in if Labour wins the general election.
The Financial Times spoke with two sources “familiar with the bank’s thinking” and revealed the banks could pay bonuses to its 1,000 London staff before the traditional June date. Labour has pledged a windfall tax on bankers’ bonuses, which the party claims will net it between £1.5bn and £2bn. When the Financial Times contacted the bank, it declined to comment.
Another source said that a desire to organise payment dates into a simpler structure was another motivation for the possible change.
The decision on when the bonuses are paid will be taken on 31 March, when the bank’s financial year comes to an end. Most investment banks in the UK have either paid out bonuses already or are scheduled to do so in advance of the election.