The coalition government have given up on their battle to stop extortionate bonus payouts being distributed to bankers.
Despite payouts thought to reach an attending £7 billion this year, is has been revealed by officials that dictating size of payments was impossible.
Instead, bank bosses and ministers are attempting to process a deal that would publicise details of the payouts, with prospects of releasing details of specific reasons for the bonus payments along with particular details of shares versus cash proportional payouts.
Chancellor George Osborne has written to EU counterparts in search of agreement to publish details of bonus payments exceeding £1 million.
Government sources argue that the public would not be satisfied by the changes even if the overall scale was limited, an insider said “does anyone expect people to cheer if £3.5 billion is paid out instead of £7 billion?”
The government is alternatively focusing its efforts into ensuring an increase in lending to small businesses; expecting to reach a multi billion pound loan target by the end of this year.
The plan acts as a remedy to announcements by the National Audit Office last month, which proved that banks had failed to lend a target of £30 billion to small businesses.
Labour leader Ed Miliband called for last year’s £3.5 billion tax on bonuses to be extended, however downing street sources have argued that “reviving lending to small firms is much more important to economic growth.”
Have the government given up too soon? Or is this new approach looking optimistic for the future of Britain’s economy?