Clegg gets tough on UK bank bonuses

London - Britain plans tough action to rein in what it regards as excessive bank bonuses, Deputy Prime Minister Nick Clegg said, ahead of the annual round of payments to star investment bankers.

"It is the Liberal Democrats who have led the debate on clamping down on bankers' bonuses. We must be just as tough this year in the bonus season that is coming up as we were last year, if not more so," Clegg, leader of the Liberal Democrats, told BBC Radio 4 on Thursday.

Britain owns 83% of Royal Bank of Scotland and 40% of Lloyds Banking Group since bailing them out. The Liberal Democrats are the junior coalition partner.

Prime Minister David Cameron said in November it was not acceptable for RBS to earmark a reported £500m for 2010 bonuses.

That total was little more than half of what the bank paid out for 2009.

Analysts expect bank bonuses to drop by nearly 40%, reflecting falling revenues following the eurozone debt crisis.