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
Do not count your chickens on the high street!
While John Lewis confirmed that Christmas Eve sales across the group were almost 25% higher than the same period last year there are many experts warning against complacency. Despite the fact that the surge in Christmas sales has been far greater than even the most optimistic forecasts, there is a concern this could be the rise before the fall. So why the doom and gloom? It would appear that ma...
Read MoreCashpoint heaven at Tesco
Visitors to a Tesco branch in Hounslow, Essex were this afternoon treated to a rare bonus when the Tesco cashpoint decided to double up on cash requests while only charging the original cash request. Due to "a rare operational error" the system had apparently malfunctioned and while it was only operational in this form for around 90 minutes a queue very quickly began to grow as word spread.
...
New Speaker demands tightening of expenses rules
As we covered in an earlier post, there is growing disgust at the UK Parliamentary system with rumours of unrest amongst MPs who stand to have their expenses system curtailed. John Bercow, the new Commons Speaker, has warned MPs that it would be a "catastrophic mistake" to water down the recommendations from Sir Christopher Kelly at a time when the UK public is looking for closure on the...
Why is the tax system so complicated?
The recent announcement of a 50% tax on banking bonuses has caused more confusion and unrest than even the government's worst critics could ever have imagined. It does now prompt the question, why is the UK tax system so complicated and does it really need to be that way? The truth is that the tax system in the UK has evolved over many decades and in many ways it has been shaped by the activiti...
Read MorePublic sector service cuts are inevitable
As the Labour Party and the Tories continue to fight over investment in the UK public sector they seem to missing the point that UK votes know and expect a reduction in investment in due course. As UK national debt moves into the trillions of pounds anybody in their right mind would know that public sector investment, which has been ramped up by the Labour government, cannot continue at the curren...
Read More