‘Lingering stink’ of the bankers’ bonuses

AN Oldham MP has warned government the “rancid stink” over bankers’ bonuses will not go away as anger mounts in Westminster.

The Government is coming under intense pressure as the City bonus season approaches, with Labour MPs demanding action to rein in payouts expected to total as much as £7bn. Speaking in the Commons, Oldham West and Royton MP Michael Meacher said: “Why are Government not extending the existing tax on bankers’ bonuses?

“Does that not prove that this is a government of the rich, by the rich and for the rich and do you not realise this rancid stink about bankers’ bonuses simply will not go away.” David Cameron and Ed Miliband clashed yesterday over the bonuses in Prime Minister’s Questions.

The Labour leader accused the Prime Minister of applying “one rule for the banks and another for everybody else”.

Mr Miliband called for the 50 per cent tax on bonuses over £25,000 imposed by former chancellor Alistair Darling to be extended for a second year.

Mr Cameron told MPs at the Government wants a settlement with banks where “their taxes go up, their lending goes up and their bonuses come down”.