City bonuses go up by a quarter, survey shows

10 August 2010

Bonuses for bankers and financial service industry professionals were up by a quarter during the latest round of salaries, new figures have shown.

According to the Office for National Statistics (ONS), bonus pay outs made between December and April during the previous financial year reached £10 billion when compared with £8 billion paid out in 2008, the Daily Telegraph reported.

Lord Oakeshott, Liberal Democrat Treasury spokesman, told the newspaper: "It's bonuses for bankers and cuts and cutbacks for everyone else.

"The real tragedy is that bankers are helping themselves to bonuses at a time when many small businesses and first-time home buyers can't get a loan."

The government has recently launched a consultation on imposing greater restrictions on bonuses by linking them to the amount of money they lend.

Previously, Alistair Darling, the former chancellor of the exchequer, announced the launch of a one-off tax on additional pay outs in December of last year in a bid to curb the size of banker bonuses.

Any individual bonus of more than £25,000 was subject to a levy of 50 per cent, a strategy which the Labour government believed would raise £550 million.

The scheme actually earned the authorities over £2 billion.

By Jim Ottewill

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