Local MP attacks Government over bankers’ Bonuses

Katy Clark, MP for North Ayrshire and Arran, has condemned the Government’s failure to take action to prevent excessive bonuses from occurring in the banking sector. The Government admitted in the past month that it will not be taking measures to curb bonuses in the financial sector. Instead, it will replace the previous Government’s temporary bonus tax on bankers with an annual levy on balance sheets, estimated to bring in £1 billion less in tax revenues. Reports suggest that the Chief Executive of RBS could be in line for a £2.5 million bonus, with his counterpart at Barclays rumoured to be receiving £8 million on top of his annual salary.

Katy said, ‘Prior to the election both the Conservatives and Liberal Democrats were talking tough about ensuring that irresponsibility in the banking industry would be brought to an end. At the first opportunity however the Government has caved into pressure from their friends in the City and refused to take any action on the obscene bonus payments which we had hoped to have seen the last of.

‘At a time when they have increased VAT to 20%, which will hit the poorest 10% of the population hardest, the Government have essentially decided to give bankers a tax cut. This is not only deeply unfair but will continue to give encouragement to the sort of irresponsible behaviour in the banking industry  which caused the financial crisis in the first place. Families across the United Kingdom struggling at this difficult economic time will rightly be furious at the Government’s refusal to bring these unacceptable bonuses to an end.