Darling admits bonus supertax failed to work

FORMER chancellor Alistair Darling admitted yesterday that his controversial super-tax on bankers’ bonuses failed to change the industry.

The Labour MP said banks had sidestepped the 50 per cent tax on bonuses over £25,000 to stay competitive.

“I think it will be a one-off thing because, frankly, the very people you are after here are very good at getting out of these things and … will find all sorts of imaginative ways of avoiding it in the future,” Darling said at a conference sponsored by investment bank Nomura. “But what I wanted to do was send a message to them that we all live in the same world.”

His admission comes after Credit Suisse announced a one-off “discretionary leadership award” for around 400 managing directors.