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Banks "to pay £7bn in bonuses" this year

Research suggests that the amount paid out in bonuses by UK banks this year will return to pre-finan

Over £7bn could be paid out as bonuses by UK banks this year, new research has suggested.

The study, conducted by the Centre for Economics and Business Research (CEBR), anticipates that the amount paid in bonuses by UK banks this year will reach £7bn, just fractionally lower than last year's pay-out of £7.3bn.

However, owing to the new 50 per cent tax rate, which applies to income over £150,000, goverment will receive a greater share of the bonus pot than city employees.

The CEBR also estimates that the level of bonus payments is now returning to pre-financial crisis levels, although has yet to approach the £11bn paid out at the height of the banking boom in 2007.