If the right were really worried about inflating public sector pay, they may want to start with the bonuses of the public sector banks
It is widely reported this morning that bank bonuses totalled £14 billion this year – the same as last year and up from £8 billion a decade ago. But falling under the radar is the fact that the bonuses paid out by the temporarily nationalised banks are greater than bonuses paid to every single public sector worker in the country.
Data from the Office for National Statistics (replicated below) shows that although just 1 per cent of the workforce work for publicly owned banks, they paid out 1.6 per cent of the country’s £35 billion bonus pool. By contrast, the public sector, which employs close to one in four Britons, paid out just 1.5 per cent.
The staggering statistics underline the capitulation by the Government on bank bonuses. Earlier this year, the Chancellor cleared the way for bonus payments to the bosses of the bailed-out banks – Royal Bank of Scotland and Lloyds Banking Group. Whereas in the past two years, the chief executives of both banks have waived their bonus payouts.
Reacting to the news, Lord Oakeshott, the former Liberal Democrat Treasury spokesman, said: ‘These banking bonus figures show sheer greed.
‘Our country won’t believe “We are all in this together” until the Government gets a grip on bank bonuses.’
George Osborne should take note.
64 Responses to “Osborne lets public bank bonuses rip, despite right’s obsession with public sector pay”
Åsa
Bankbonusar i storbritannien: 14 miljarder pund. http://bit.ly/rgMUFh #bailout #kapitalism #addedvalue
Minne
Bankbonusar i storbritannien: 14 miljarder pund. http://bit.ly/rgMUFh #bailout #kapitalism #addedvalue
Dave Citizen
Come off it Robert – your logic seems to be: the last lot messed up so you can’t moan when the new lot do like wise. If that’s the basis for judging governments then we’re all doomed.
I do agree that new taxes are desperately needed though. The aim should be to bring all people living in our society into line with the basic principle that it’s anti-social if anyone enjoys material wealth that’s more than a certain number of times greater than say a paramedic or front- line soldier can earn (with overtime if you like).
What do you think would be a fair multiplier – 50 times what a soldier can get?
The Devil is in the Detail – Looking beyond the political surface. | What is Black, White and Red All Over?
[…] slipped under the radar is the failure of Chancellor Osborne to again rein in Bank bonuses for the second year running as bosses received a massive £14bn. In the case of the nationalised […]
Ed's Talking Balls
Come off it Dave – as I read it, Robert was simply providing a proper context.
Yes, of course people should be free to criticise a government when it is acting (or failing to act) in a certain way. But to do so from a party political stance when your own house is anything but in order is a bit off.
Exasperation at the coalition for soaring bank bonuses is fair enough, but not if you fail to acknowledge that the Labour Party did the same and, had it won the election, would no doubt be doing the same now (i.e. precisely nothing).