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Written question asked by Lord Mann (Labour) on Monday, 9 January 2012, in the House of Commons. It was due for an answer on Monday, 16 January 2012. It was answered by Mark Hoban (Conservative) on Monday, 16 January 2012 on behalf of the Treasury.

Banks: Pay

Question
To ask the Chancellor of the Exchequer what discussions he has had with (a) Lloyds TSB and (b) Royal Bank of Scotland on provision of bonuses in 2012.
Answer

The Government are committed to tackling unacceptable bank bonuses. At the start of 2011 we placed a limit of £2,000 on cash bonuses for the Royal Bank of Scotland and Lloyds in respect of 2010 bonuses. The bonus pool in respect of 2010 bonuses was significantly lower than the previous year and we have introduced the most transparent reporting regime of any major financial centre.We have made it clear that the bonus pool this year in respect of 2011 bonuses must again be lower and more transparent. Further, the chief executive of LBG, Antonio Horta-Osorio, has decided that he does not want to be considered for a bonus for last year.The Government are also clear that at a time like this, banks should be following the new Financial Policy Committee's recommendation that bank earnings should be used first and foremost to build capital levels not pay out larger bonuses, so that banks can lend to families and businesses, and are protected against market instability.

Secondary information

Type
Written question
Reference
89028; 538 c492W
Session
2010-12
Subjects
Banks Pay
Link
View this Written question on www.publications.parliament.uk