The TUC has criticised the government, claiming the City will be cracking open the champagne over its ‘pathetic’ bank levy.

The government published proposals over the introduction of a levy on banks’ balance sheets from 1 January 2011 yesterday, and expects it to generate around £2.5 billion of annual revenues.

TUC General Secretary Brendan Barber said: “This is a pathetically small amount to demand from the banks. Ministers have come up with the smallest number that they think they can get away with