Data provided by McGregor BFA
All data is delayed
Loading...
See More

British PM warns banks over bonuses

Oct 05 2010 18:57 Sapa & AFP

Related Articles

Britain's trade deficit widens

Britain cuts spending, hikes taxes

Britain stuck in recession

Britain fails to exit recession

Britain plans banks tax raid

HSBC chair to become UK trade minister

 
Birmingham - British Prime Minister David Cameron warned Tuesday that banks could face action over huge bonuses after new figures showed payouts were likely to hit $11bn this year.

Cameron, whose centre-right Conservatives lead a coalition that is gearing up for harsh cuts, said massive bonuses would be "intolerable" if banks failed to free up credit and support small businesses.

"If these banks don't get on and lend money to small business, and if at the same time they're spending vast amounts on bonuses for themselves, that's an intolerable situation," Cameron told BBC radio.

He said the government had already put in place a bank levy following the global financial crisis that would raise "billions" of pounds, but added that it would "look very carefully at this bonus issue."

"We cannot just stand by if the banks aren't lending and if they are paying themselves large bonuses," he said.

"People will be angry about this because people do see that the banks got out of control."

The Conservative-Liberal Democrat coalition government, which took power in May, is set to outline deep cuts which it says are necessary to slash the record deficit inherited from the previous Labour administration.

Cameron's comments came after a consultancy said City bonuses were likely to recover this year to the levels seen before the financial crisis, around £7bn (€8bn).

The Centre for Economics and Business Research (CEBR) said, however, that the government would take back much of the bonuses due to a new 50% tax rate on high earners.

"A whopping seven billion pound bonus payout will be easier to stomach if the lion's share goes to the nation," said CEBR economist Benjamin Williamson.

Finance minister George Osborne pledged the most dramatic changes to the state benefits system since the 1940s, in a speech at the annual Conservative party conference on Monday.

His announcement comes two weeks before the government unveils its spending plans, which are expected to include cuts of 25% in most departmants.
david cameron  |  financial crisis
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

Zuma: Booers are empty vessels

President Jacob Zuma has labelled people who boo at him "empty vessels who make the most noise".

 
 

Latest elections multimedia

DA won't get 30% - Zille
The EFF's ad was banned, see why
Why Jack Parow wants you to vote on 7 May
The ad the SABC doesn't want to air

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...