The chancellor George Osborne has spent over £43,000 of taxpayers' money defending bankers' bonuses, according to new figures.
The bonus cap restricts bankers’ bonuses to 100 per cent of their pay, or 200 per cent with shareholder approval
The chancellor George Osborne has spent over £43,000 of taxpayers’ money defending bankers’ bonuses, according to new figures.
A response from the Treasury to a Freedom of Information request by Labour shadow financial secretary to the Treasury Cathy Jamieson has revealed that the total cost of external legal fees relating to the legal challenge to the bankers’ bonus cap and connected advice is £43,064.
But the true cost to the taxpayer is likely to be even higher as the figures are only for the external legal costs of the challenge and do not include the cost of civil servants who worked on the case.
The bonus cap restricts bankers’ bonuses to 100 per cent of their pay, or 200 per cent with shareholder approval.
George Osborne lodged a legal challenge with the European Court of Justice on the bonus cap in September 2013 but the move was abandoned in November 2014 when Osborne said it was “unlikely to succeed”.
Commenting on the news, Cathy Jamieson MP said:
“While working families face a cost-of-living crisis, it is astounding that George Osborne chose to waste taxpayers’ money fighting a bank bonus cap.
“His decision revealed his true priorities and showed just how out of touch he is.
“It shouldn’t have taken the EU to act to rein in excessive bonuses, but George Osborne has totally failed to act here in Britain.
“Labour will reform the banks and levy a tax on bank bonuses to fund a paid starter job for young people out of work for over a year.”
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19 Responses to “George Osborne spends £43,000 of taxpayers’ money defending bankers’ bonuses”
ForeignRedTory
;Just think about how taxes would have to go up for everyone if the City
of London lost its pre-eminence and its tax receipts it earned fell !!!’
Just think about how taxes for everyone could be slashed if the City of :London could be taxed properly.
Let’s have an Value Added Tax on financial transactions.
Godfrey Paul
And allow uncontrolled immigration so that the continual supply of labour keeps wages down just like they did for the 13 years to 2010.
Leon Wolfeson
Keep pushing your myths, as you try and close the border on the 99% and trade, so you can drop wages dramatically. Given your system would have far higher unemployment than Labour is pushing you are being a screaming hypocrite.
Everything for you is clearly about your hate of the Other. Never mind the topic being discussed, and you need to make everything about your hate.
wildcolonialboy
This story is bunk. Osborne is 100% wrong on his position on banker bonuses, but “Government spends money defending government policy” is not a story. As the elected government they are entitled to spend money on legal advice in support of their stated policies.
Either criticise the policy itself or take a step back.
JoeDM
Yep. Good point. We need to make full use of our comparative advantages and international finance is a major one.