Calls to cut RBS’s £500m bonus costs

THE coalition government was today urged to take urgent action over £500 million of bonuses due to be paid by Royal Bank of Scotland.

Hundreds of traders and investment bankers who were bailed out by taxpayers at the height of the financial crisis are expected to walk off with pay and perks packages worth more than £1 million each.

Former Liberal Democrat Treasury spokesman Lord Oakeshott branded the planned pay-outs “a disgrace”.

He said: “Our taxes mustn’t be wasted paying bonuses. The Government must use the whip, not the feather duster, and make RBS lend to boost jobs.”

The latest bonus row comes as politicians and religious leaders speak out about corporate excess.

RBS said no decision on the pay-outs would be taken until the new year.