Should taxpayers be paid back before bonuses are paid out?
While we look at the likes of Royal Bank of Scotland and Lloyds bank, and the potential billion pound payouts in staff bonuses, we should also consider the fact that the billions of pounds poured into the system as a whole have benefited all banking operations within the UK. As a consequence, there is a growing belief that taxpayers should be "paid back" before enormous salaries and bonuses are agreed with the likes of Royal Bank of Scotland, Lloyds bank and other banking operations. But is this feasible?
The truth is that those operating in the higher league of the UK banking system, especially the investment banking arena, are used to being rewarded for their endeavours. If the likes of Royal Bank of Scotland and Lloyds bank want to maintain the highest quality staff in the short, medium and longer term then they will need to funnel some of their funding into salaries and bonuses. It is very short-sighted to suggest that banks should be paying back taxpayers before rewarding their staff although in the current economic environment, with more and more taxpayers struggling to survive, it is easy to see why this belief is there.
Share this..
Related stories
Comet Staff face losing Job before Christmas
There were not many organisations across the UK that didn’t feel the full effects of the double-dip recession, but Comet, one of the biggest electrical retailers in Britain, are in a class of companies that failed to emerge from the downturn intact. While the company has already lost 41 shops and more than 1,000 staff, Deloitte has said that the lack of a firm offer from Comet to maintain the...
Read MoreTax cuts are all well and good but how would the Liberal Democrats fund them?
While the Liberal Democrats were very vocal in their questioning of why the UK population puts so much emphasis on property they have also been shouting about tax cuts from the hill tops. This is great to hear, and a move away from the Liberal Democrat policies of the past, but how will they fund this reduction in tax rates?
Yes, you have guessed it, the Liberal Democrats plan to t...
Treasury announce offshore tax amnesty has been a success
The UK government has today announced that 10,000 people stepped forward to confirm they had been holding funds overseas which were undeclared to the tax authorities in the UK. This move came after an amnesty announced by the UK government in July last year which ended on 4 January 2010. Those who finally came forward will now have to pay their unpaid tax, interest on outstanding tax and a 10% fin...
Read MoreTory party force government to debate pre-election report
The Tory party has had a significant success today in the Houses of Parliament after they forced the Speaker of the house to order Labour to hold a debate on the pre-budget report prior to the introduction of the VAT reduction on 1 December. This is an important victory for the Tory party as it ensures the bad economic news announced yesterday remains headline news for sometime yet.
...
Results week beckons for UK banks
This week sees a range of UK banks announcing their profits at a time when it is very difficult to know what to do. As a UK bank, do you announce exceptional profits and thank the taxpayer for helping out or do you play down the situation and promise to increase lending in the future?
In many ways the UK banks cannot win this week because if they show signs of recovery in their prof...