Banks have claimed that the tax, introduced in the pre-Budget report last week, will lead to key staff and offices moving offshore in order to avoid paying it and have called on the Chancellor to make it less onerous.
But according to The Financial Times, an aide to the Chancellor said the banks do not seem to realise the tax has been introduced to change their behaviour and the solution is for the banks to pay less in bonuses.
City minister Lord Myners also entered the fray saying he would not apologise over the introduction of the supertax. He said that disgruntled staff should complain to their employers if the bonuses were cut and not to the Treasury.
The bonus tax is expected to raise £550m in revenues, though banks claim it would raise far more.