The Trades Union Congress (TUC) has called for corporation tax relief on some employee benefits like very large bonuses to be lifted in order to increase revenue to the Treasury.

In a new report, the organisation argues as much as £1.7 billion per year could be raised by taxing the financial rewards of the 29,000 individuals earning more than £262,000 per year in the banking and finance sector.

This would rise to £5 billion if the same rule were applied to all industries, the body added.

General secretary for the TUC Brendan Barber said “it is only right” top earners in the banking sector that he says had a key role in causing the financial crisis should share their “eye-watering” staff rewards with the public.

“The chancellor should use his budget to end the privileged status that the financial services sector enjoys at the expense of everyone else,” he stated.

Prime minister David Cameron recently asked Royal Bank of Scotland employees to “show restraint” when accepting bonuses.