The Queen of England formally announced the new bill at the opening of the new session of parliament this morning.
The Queen's speech traditionally outlines proposed legislation for the forthcoming parliamentary session.
If the bill is passed, it would give the Financial Services Agency the power to tear up banker's contracts which offer unjustifiable remuneration or promote unacceptable risk taking.
British Prime Minister Gordon Brown hopes that legislation, which will end the bonuses and practices that partly contributed to the financial services meltdown, will have voter appeal.
There is also a bill proposed to put into legislation the government's promise to reduce its budget deficit within four years.
The Conservative opposition says that putting a commitment into legislation will not necessarily make it happen and that both bills have little chance of becoming law before next year's general election.
