UK expected to announce tax on bank bonuses

Britain's Treasury chief was widely expected to announce on Wednesday a tax on bank bonuses in his pre-budget statement, an updated plan for taxing and spending that a senior official warned would be painful.

Treasury chief Alistair Darling has sharply criticized bonuses paid to bankers, especially at companies saved by taxpayers' money, and is under pressure to rein in spending to deal with a deficit of at least 175 billion pounds ($284 billion) this year.

On the other hand, the government is also preparing for a national election which must be held by June.

"There will be belt-tightening, and there will be down-payments on reductions in …