UK government 'still fighting' over bank pay

12 January 2011

The British government remains steadfast in its efforts to reduce banking remuneration to a more responsible level despite suggestions to the contrary, it has been claimed.

In an interview with the BBC's Newsnight, Liberal Democrat Treasury spokesman Lord Oakeshott rejected speculation the coalition had all but given up on restricting bonuses and insisted its stance on the matter is unchanged.

"It's an important issue for us. We're not going to go back on it," he explained. "This is going on. This is very topical. We are still very much fighting."

Lord Oakeshott's comments came after Conservative chancellor George Osborne issued a warning to financial firms, stating that no course of action was "off the table" if the government feels this year's performance-related payouts are excessive.

Reports have indicated that Royal Bank of Scotland chief executive Stephen Hester could be in line for a bonus of up to £3 million ($1.91 million), although the firm was this week fined by the Financial Services Authority over customer complaints.

By Asim Shah

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development