UK government to go ahead with transparency rules for bonuses, reports claims

7 September 2010

The British government and its chancellor George Osborne are to go ahead with their plans to introduce new transparency rules surrounding banker bonuses, news reports have claimed.

Proposals drawn up by Sir David Walker called for details on bankers rewarded pay packets of more than £1 million to be made public.

A news report recently published by the Sunday Times suggested that Mr Osborne was considering paring back the legislation.

The UK’s government is thought to be facing increasing pressure from the financial services industry, which is concerned it is being made a scapegoat for the global credit crisis through ongoing restrictions and levies.

However, a spokesman for the chancellor told the Financial Times that the government would not shy away from implementing the recommendations made in the report.

“The chancellor is committed to implementing Walker. He is not going soft in any way and that includes implementing the pay bands.”

New regulations to the banking industry have been introduced by both the previous and current governments.

Earlier in the year, Mr Osborne launched a consultation on a new tax on bank balance sheets which could earn the authorities as much as £2.5 billion.

The previous government levied a one-off tax on banker bonuses of over £25,000 in December of last year as part of a bid to restrict the bonus culture among banks.

By Jim Ottewill

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