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Manifestos to target the City

THE City is set to take centre stage in the general election campaign this week, when the Tories and Labour unveil their manifestos.

The Conservatives will confirm plans to raise over £1bn via a levy on banks’ wholesale funding when they release their manifesto tomorrow. Part of that will fund their £550m tax break for married couples.

And they will flesh out propsals to let the public buy shares in RBS and Lloyds at a discounted price when they are privatised.

The manifesto will also confirm their commitment to disbanding the FSA, handing its regulatory powers to a beefed-up Bank of England.

Meanwhile, Labour sources said its manifesto – to be released today – will support small businesses but force the City to “face up to its responsibilities”.

“We won’t allow the gross irresponsibility in the City to destroy our economy,” Ed Miliband, the manifesto’s author, said yesterday. Labour will outline plans to let the FSA tear up bankers’ contracts if it thinks they are being rewarded for excessive risk taking.