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Sustainable Economy > Published by Will Straw, July 20th 2011 at 9:15 am

Osborne lets public bank bonuses rip, despite right’s obsession with public sector pay

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It is widely reported this morning that bank bonuses totalled £14 billion this year – the same as last year and up from £8 billion a decade ago. But falling under the radar is the fact that the bonuses paid out by the temporarily nationalised banks are greater than bonuses paid to every single public sector worker in the country.

Data from the Office for National Statistics (replicated below) shows that although just 1 per cent of the workforce work for publicly owned banks, they paid out 1.6 per cent of the country’s £35 billion bonus pool. By contrast, the public sector, which employs close to one in four Britons, paid out just 1.5 per cent.

The staggering statistics underline the capitulation by the Government on bank bonuses. Earlier this year, the Chancellor cleared the way for bonus payments to the bosses of the bailed-out banks – Royal Bank of Scotland and Lloyds Banking Group. Whereas in the past two years, the chief executives of both banks have waived their bonus payouts.

Reacting to the news, Lord Oakeshott, the former Liberal Democrat Treasury spokesman, said: ‘These banking bonus figures show sheer greed.

‘Our country won’t believe “We are all in this together” until the Government gets a grip on bank bonuses.’

George Osborne should take note.

  • http://twitter.com/shezzle0/status/93595296034074624 Shez

    Osborne lets public bank bonuses rip, despite right's obsession with public sector pay: http://bit.ly/nUG9sH : writes @wjdstraw

  • http://twitter.com/robinwilson250/status/93595663459287040 Robin Wilson

    RT @leftfootfwd: Osborne lets public bank bonuses rip, despite right's obsession with public sector pay http://t.co/d36XX2b

  • http://twitter.com/wendyj08/status/93595897421758464 wendy griffiths

    Osborne lets public bank bonuses rip, despite right's obsession with public sector pay: http://bit.ly/nUG9sH : writes @wjdstraw

  • http://twitter.com/jonathanpsadler/status/93596004040978432 Jonathan Sadler

    RT @leftfootfwd Osborne lets public bank bonuses rip: http://bit.ly/nUG9sH. Depressing familiar story: two rules at play again.

  • http://twitter.com/john_gillibrand/status/93596162677944320 John Gillibrand

    Osborne lets public bank bonuses rip, despite right's obsession with public sector pay: http://bit.ly/nUG9sH : writes @wjdstraw

  • http://twitter.com/nicky2806/status/93596371675910144 Nicky

    Osborne lets public bank bonuses rip, despite right's obsession with public sector pay: http://bit.ly/nUG9sH : writes @wjdstraw

  • http://twitter.com/nulabournemesis/status/93596668620062720 Νέα Νέμεσις Εργασίας

    '@leftfootfwd @wjdstraw How does trashing publicly-owned banks actually improve things for anyone, Will? http://t.co/wI7G94G

  • http://twitter.com/pareayh/status/93597401453043714 paurina

    Osborne lets public bank bonuses rip, despite right's obsession with public sector pay: http://bit.ly/nUG9sH : writes @wjdstraw

  • http://twitter.com/eifp/status/93597616444686336 Eifion Paul

    Osborne lets public bank bonuses rip, despite right's obsession with public sector pay: http://bit.ly/nUG9sH : writes @wjdstraw

  • http://twitter.com/crosscrosslet/status/93598690249408512 Tim Weisselberg

    Osborne lets public bank bonuses rip, despite right's obsession with public sector pay: http://bit.ly/nUG9sH : writes @wjdstraw

  • http://twitter.com/therightarticle/status/93599134438793216 Michael

    Osborne lets public bank bonuses rip, despite right’s obsession with public sector pay l Left Foot Forward – http://tinyurl.com/3r5sucg

  • http://twitter.com/tamsinchan/status/93600060096512001 Tamsin

    Osborne lets public bank bonuses rip, despite right’s obsession with public sector pay l @wdjstraw http://tinyurl.com/3r5sucg > @falseecon

  • http://twitter.com/snmc9/status/93600815234809856 Sally MC

    Osborne lets public bank bonuses rip, despite right’s obsession with public sector pay l @wdjstraw http://tinyurl.com/3r5sucg > @falseecon

  • http://twitter.com/samsoprano30/status/93601229900484608 Sam hussain

    Osborne lets public bank bonuses rip, despite right’s obsession with public sector pay l @wdjstraw http://tinyurl.com/3r5sucg > @falseecon

  • http://twitter.com/gothicblue/status/93601249752125440 Serendipity Smith

    Osborne lets public bank bonuses rip, despite right’s obsession with public sector pay l @wdjstraw http://tinyurl.com/3r5sucg > @falseecon

  • http://twitter.com/tonydowling/status/93602634933600256 Tony Dowling

    Osborne lets public bank bonuses rip, despite right's obsession with public sector pay: http://bit.ly/nUG9sH : writes @wjdstraw

  • http://twitter.com/tonydowling/status/93603142003998720 Tony Dowling

    Public sector worker? Tut-tut, your pension's too generous. Banker? Responsibke for deficit? Here, have some more!: http://t.co/IrxwCkF

  • http://twitter.com/salardeen/status/93604012674392064 salardeen

    Osborne lets public bank bonuses rip, despite right’s obsession with public sector pay l Left Foot Forward – http://tinyurl.com/3r5sucg

  • http://twitter.com/falseecon/status/93607492617121792 False Economy

    RT @leftfootfwd Osborne lets public bank bonuses rip, despite right's obsession with public sector pay http://bit.ly/nUG9sH writes @wjdstraw

  • http://twitter.com/steveturner02/status/93607890694311937 steve turner

    RT @leftfootfwd Osborne lets public bank bonuses rip, despite right's obsession with public sector pay http://bit.ly/nUG9sH writes @wjdstraw

  • http://twitter.com/frdragonspouse/status/93607937976696832 Jill Hayward

    RT @leftfootfwd Osborne lets public bank bonuses rip, despite right's obsession with public sector pay http://bit.ly/nUG9sH writes @wjdstraw

  • http://twitter.com/baroness_shanaz/status/93608218722439168 Baroness S

    RT @leftfootfwd Osborne lets public bank bonuses rip, despite right's obsession with public sector pay http://bit.ly/nUG9sH writes @wjdstraw

  • http://twitter.com/oxkev/status/93608518325772288 Oxford Kevin

    RT @leftfootfwd Osborne lets public bank bonuses rip, despite right's obsession with public sector pay http://bit.ly/nUG9sH writes @wjdstraw

  • http://twitter.com/gemmatumelty/status/93608660768534528 Gemma Tumelty

    RT @leftfootfwd Osborne lets public bank bonuses rip, despite right's obsession with public sector pay http://bit.ly/nUG9sH writes @wjdstraw

  • http://twitter.com/rosiecosy/status/93609440552554496 Rosie

    RT @leftfootfwd Osborne lets public bank bonuses rip, despite right's obsession with public sector pay http://bit.ly/nUG9sH writes @wjdstraw

  • http://twitter.com/avichai15/status/93610256025923584 Paul McGlynn

    RT @leftfootfwd Osborne lets public bank bonuses rip, despite right's obsession with public sector pay http://bit.ly/nUG9sH writes @wjdstraw

  • http://twitter.com/pareayh/status/93610367254659072 paurina

    RT @leftfootfwd Osborne lets public bank bonuses rip, despite right's obsession with public sector pay http://bit.ly/nUG9sH writes @wjdstraw

  • http://twitter.com/yrotitna/status/93610576017752065 Juan Voet

    RT @leftfootfwd Osborne lets public bank bonuses rip, despite right's obsession with public sector pay http://bit.ly/nUG9sH writes @wjdstraw

  • http://twitter.com/steelixs/status/93611598698127360 Les Steel

    Public sector worker? Tut-tut, your pension's too generous. Banker? Responsibke for deficit? Here, have some more!: http://t.co/IrxwCkF

  • http://twitter.com/spsot/status/93612861330432000 Spir.Sotiropoulou

    RT @leftfootfwd: Osborne lets public bank bonuses rip, despite right's obsession with public sector pay http://t.co/4GvyNZv

  • StephenHenderson

    Yeah this could be dynamite if RBS has to come and get more capital from the taxpayer..like we’re shovelling money in the front door and they’re dispensing largesse straight out of the back.

    http://www.bloomberg.com/news/2011-07-18/deutsche-bank-socgen-rbs-face-pressure-to-boost-funds-after-stress-tests.html

  • http://twitter.com/sheffuncut/status/93617376213471232 Bruno Bear

    RT @leftfootfwd Osborne lets public bank bonuses rip, despite right's obsession with public sector pay http://bit.ly/nUG9sH writes @wjdstraw

  • http://twitter.com/bazbit/status/93618487221694464 sharon barron

    RT @leftfootfwd Osborne lets public bank bonuses rip, despite right's obsession with public sector pay http://bit.ly/nUG9sH writes @wjdstraw

  • http://twitter.com/michaelshapcott/status/93620003676491776 Michael Shapcott

    RT @leftfootfwd Osborne lets public bank bonuses rip, despite right's obsession with public sector pay http://bit.ly/nUG9sH writes @wjdstraw

  • Robert

    Come on Labour could have stopped it if Brown has stated rules for banking bonus payments before giving out the loans! he did not.

    So right now Banks will keep paying it until a new tax is brought in, but heck we even had a Labour Minister telling us we hate people being rich.

    Blaming the Tories when it should have been sorted under Lqabour, bit of a laugh

  • http://twitter.com/brumprotestor/status/93624757525811200 Brummie Protestor

    RT @leftfootfwd Osborne lets public bank bonuses rip, despite right's obsession with public sector pay http://bit.ly/nUG9sH writes @wjdstraw

  • http://twitter.com/paul0evans1/status/93624842657607680 Paul Evans

    Libertarians argue that civil servants vastly overprice their own admin costs. Remind me? What's a banker's bonus for? http://t.co/1SybPhJ

  • http://twitter.com/digidickinson/status/93624899297488896 Andy Dickinson

    Libertarians argue that civil servants vastly overprice their own admin costs. Remind me? What's a banker's bonus for? http://t.co/1SybPhJ

  • http://twitter.com/lighthearteddan/status/93628778114330625 Daniel Weichman

    RT @leftfootfwd Osborne lets public bank bonuses rip, despite right's obsession with public sector pay http://bit.ly/nUG9sH writes @wjdstraw

  • http://twitter.com/jameshuncut/status/93633121408393216 James Hopkins

    RT @leftfootfwd: % of workers in public sector 23%. % of bonuses in public sector 3% http://t.co/BSdupc1

  • http://twitter.com/ldtuc/status/93643222131294209 L DTUC

    Osborne lets public bank bonuses rip, despite right's obsession with public sector pay: http://bit.ly/nUG9sH : writes @wjdstraw

  • http://twitter.com/june4th/status/93657276321247233 Noxi

    Osborne lets public bank bonuses rip, despite right's obsession w/ public sector pay http://bit.ly/nUG9sH : writes @wjdstraw RT @leftfootfwd

  • http://twitter.com/aliesbati/status/93693546728656896 Ali Esbati

    Bankbonusar i storbritannien: 14 miljarder pund. http://bit.ly/rgMUFh #bailout #kapitalism #addedvalue

  • http://twitter.com/tigerbalsam1/status/93697334529101825 Lena K Andersson

    Bankbonusar i storbritannien: 14 miljarder pund. http://bit.ly/rgMUFh #bailout #kapitalism #addedvalue

  • http://twitter.com/olaberg/status/93699235907780608 Ola Berg

    Bailout är inte kapitalism RT@aliesbati: Bankbonusar i storbritannien: 14 miljarder pund. http://t.co/20O2vFW #bailout #kapitalism

  • http://twitter.com/svanstroll/status/93699557979996161 Martin Björnsson

    Bankbonusar i storbritannien: 14 miljarder pund. http://bit.ly/rgMUFh #bailout #kapitalism #addedvalue

  • http://twitter.com/kolchi7/status/93700999998476288 Olof

    Bankbonusar i storbritannien: 14 miljarder pund. http://bit.ly/rgMUFh #bailout #kapitalism #addedvalue

  • http://twitter.com/piaktw/status/93702376619388928 Pia K

    Bankbonusar i storbritannien: 14 miljarder pund. http://bit.ly/rgMUFh #bailout #kapitalism #addedvalue

  • http://twitter.com/denke/status/93703015202168832 Denke

    Bankbonusar i storbritannien: 14 miljarder pund. http://bit.ly/rgMUFh #bailout #kapitalism #addedvalue

  • http://twitter.com/notepadonlife/status/93724916523864064 Notepad on Life

    Osborne lets public bank bonuses rip, despite right's obsession with public sector pay | Left Foot Forward http://t.co/iriTSyC

  • http://twitter.com/nymne/status/93728406759407616 Åsa

    Bankbonusar i storbritannien: 14 miljarder pund. http://bit.ly/rgMUFh #bailout #kapitalism #addedvalue

  • http://twitter.com/chingshih/status/93728865033269249 Minne

    Bankbonusar i storbritannien: 14 miljarder pund. http://bit.ly/rgMUFh #bailout #kapitalism #addedvalue

  • Dave Citizen

    Come off it Robert – your logic seems to be: the last lot messed up so you can’t moan when the new lot do like wise. If that’s the basis for judging governments then we’re all doomed.

    I do agree that new taxes are desperately needed though. The aim should be to bring all people living in our society into line with the basic principle that it’s anti-social if anyone enjoys material wealth that’s more than a certain number of times greater than say a paramedic or front- line soldier can earn (with overtime if you like).

    What do you think would be a fair multiplier – 50 times what a soldier can get?

  • http://simpkins83.wordpress.com/2011/07/20/the-devil-is-in-the-detail-looking-beyond-the-political-surface/ The Devil is in the Detail – Looking beyond the political surface. | What is Black, White and Red All Over?

    [...] slipped under the radar is the failure of Chancellor Osborne to again rein in Bank bonuses for the second year running as bosses received a massive £14bn. In the case of the nationalised [...]

  • Ed’s Talking Balls

    Come off it Dave – as I read it, Robert was simply providing a proper context.

    Yes, of course people should be free to criticise a government when it is acting (or failing to act) in a certain way. But to do so from a party political stance when your own house is anything but in order is a bit off.

    Exasperation at the coalition for soaring bank bonuses is fair enough, but not if you fail to acknowledge that the Labour Party did the same and, had it won the election, would no doubt be doing the same now (i.e. precisely nothing).

  • jonathan

    It seems as if there is an insane obsession amongst bankers where their worth and status are measured by how much bonus they can give themselves. I may be wrong here but there seems to be no social contribution measure such as the banks contribution to GDP, that could balance this blatant greed.

  • Dave Citizen

    Jonathan, I think you’ve hit the nail on the head: there is no way of legitimating this blatant greed. It’s impossible for a person to work so much better or take so much bigger risks than say a soldier, that they ‘deserve’ such rewards.

    About all one can say is that, at the moment, we let them get away with it so they grab it while they can.

  • Leon Wolfson

    One good concept I heard proposed today is a bonus tax, with a rate based on the multiple over the lowest salary worker in the company.

  • Mr. Sensible

    So the outcome of project paper bag is complete double standards on the right…

  • Ed’s Talking Balls

    ‘double standards on the right’

    Please tell us all of the left’s courageous actions on banking excesses over the last decade or so, Mr. Sensible. We’re all ears…

  • http://twitter.com/salaryrights/status/93823496483905536 Yancey Thomas

    Osborne lets public bank bonuses rip, despite right's obsession with public … http://bit.ly/n3onVc

  • http://twitter.com/markibishop/status/93959212383731712 mark

    RT @leftfootfwd: Osborne lets public bank bonuses rip, despite right's obsession with public sector pay http://t.co/OyEGj2p

  • Mr. Sensible

    Ed, look, I have said several times on here that the previous government should have done more to regulate the financial system, along with every other major industrial economy.

    But what exactly is this one doing about it? No bonus restraint under Project Paper Bag (that name is more appropriate given what Lord Oakeshott said), no agreement on pay transparrency, and grose, not net, lending targets which are not being met. Osborne can give us all the rhetoric in the world about us all being in this together, but I, for one, simply don’t believe it.

  • Ed’s Talking Balls

    True enough, I can’t disagree with any of that. I was merely concerned that you were trying to make this a left-right issue, when quite clearly both parties were and are unwilling to address a rampant bonus culture. There’s no point pretending.

    And you are absolutely right, we are not “all in this together”. What a nonsense slogan.