City bosses say move would be economically disastrous, but union leaders urge likely new PM to ignore ‘vested interests’

Battle lines are being drawn between City bosses and trade unions over a possible tax raid on UK banks to help fund Andy Burnham’s package for struggling households this winter.

While bankers have warned the move would be “economic suicide”, union leaders have said Britain cannot afford to be “held hostage” by City lobbyists, given growing pressures to find money for defence and cost of living support.