Coalition still fighting bonuses, says Lord Oakeshott

George Osborne - Chancellor of the Exchequer

George Osborne – Chancellor of the Exchequer

Liberal Democrat Treasury spokesman Lord Oakeshott has announced this morning that the coalition government is still ‘very much fighting’ on the bank bonuses issue.

Business Secretary Vince Cable has also demanded Barclays Chief Bob Diamond take a reduced bonus this year.

Prime Minister David Cameron has called for banks to reduce the current bonus payments but has stated that the system should not be ‘micromanaged’.

Today’s announcements come after Chancellor George Osborne suggested that if co-operation was not achieved, then no measure ‘was off the table’.

These comments come amid the continued row over bankers bonuses which are reported to be around £7bn this year.

Anger has been caused among many MP’s after reports that RBS boss Stephen Hester, who is running an 84% taxpayer-owned bank, is up for a £2.5m bonus causing minister to take action.

Downing Street have denied giving up on the issue and argued that the imposition of a permanent bank levy would bring in £2.5bn a year by the end of the coalition government.

Labour minister are suggesting an extension of the one-off bonus tax which made £3.5bn last year.

Asked if Mr Cable was still fighting to impose limits on bank bonuses, Lord Oakeshott told the BBC Newsnight:

Lord Oakeshott was asked if Business Secretary Vince Cable was still fighting to impose limits on the bankers bonuses on BBC Newsnight, to which he replied: “It’s not just Vince it’s the Liberal Democrats as a whole: it’s an important issue for us. We’re not going to go back on it.”

“This is going on. This is very topical. We are still very much fighting,” he said.

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