Chancellor of the Exchequer Alistair Darling has imposed a 50% levy on banker bonuses and said he will increase income taxes after elections next year.

The Treasury expects to raise 550 million pounds ($896 million) targeting payouts at banks in the next few months and another 3 billion pounds from incomes earned after April 2011. Borrowing will rise by 4.6 billion pounds to 611 billion pounds in the four years through March 2013.

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