The Pre-Budget statement was one of enhanced political significance against the backdrop of a forthcoming General Election. It was widely expected that some measures would be taken against the banking sector. The scale and breadth of ramifications of the bank payroll tax provisions are, however, surprising. There were some significant revenue raising measures which have been highlighted below, together with measures put forward twelve months ago which will have a concertina effect of significantly higher taxes, now for city workers on bonuses and for the higher paid generally from April next year which we remind you of; as well as a surprise national insurance increase across the board.

Raising tax revenues is a high priority for the Chancellor and measures announced in the 2009 Budget and Pre-Budget Report appear to be targeting the highest earners.