Goldman Sachs is reviewing its London operation, a move that could eventually see entire departments shifted overseas, according to the Daily Telegraph newspaper in a report naming no sources.

It said the Wall Street firm, which also has a wealth management operation, is mulling future strategy as the UK government gears up to levy a new top-rate income tax of 50 per cent on high earners and levy a 50 per cent tax on bonuses in excess of £25,000 (around $40,200)

The story adds to speculation that higher taxes, tougher regulations and an increasingly aggressive political stance towards the banking industry will drive some financial institutions and staff out of the UK to rival centres such as Switzerland and Singapore.

The newspaper said that among Goldman’s London operations which are up for review are its proprietary trading arm and foreign exchange teams.