Call to block RBS bonus bid

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Labour is urging Chancellor George Osborne to block any attempt by Royal Bank of Scotland to pay bonuses of up to double its bankers’ annual salary.

There are concerns RBS will seek to invoke an EU rule that it can pay bonuses up to that limit if they are approved by shareholders.

But Labour has tabled a Commons motion calling on the Government -–RBS’s biggest shareholder – to reject it. The normal limit for bonuses set by the EU is equivalent to one year’s pay but the EU rules do allow this to be doubled with shareholder approval.

Shadow Treasury chief secretary Chris Leslie said: “At a time when families face a cost-of-living crisis and bank lending to business is falling, it cannot be right for George Osborne to approve a doubling of the bank bonus cap.”