Redwood calls for RBS to be broken up

FORMER Tory cabinet minister John Redwood called for the Royal Bank of Scotland to be broken up and sold to boost Treasury finances in the Commons yesterday.

Mr Redwood, who served in John Major’s cabinet, told MPs he wanted to see measures to break the bank up, promote better management and get some money back for the taxpayer, as he called for a Commons debate on the move.

The Tory MP, in a strongly worded criticism of the performance of the banks, said: “RBS has announced pay increases for investment bankers, huge losses and no dividends for taxpayers yet again.”

Labour’s shadow leader of the house, Angela Eagle, attacked what she claimed was the UK coalition government’s failure to act over RBS bonus payments yesterday in the Commons.

She said: “Today the Royal Bank of Scotland announced their losses doubled last year; there have been 3,500 job cuts, frontline bank staff have been offered a 1 per cent pay rise.

“With ordinary families struggling, can it be acceptable RBS is planning to pay £400 million of bonuses to top bankers from a state-owned bank?”

Meanwhile, Commons Leader of the House Sir George Young said that Mr Redwood’s “radical suggestion for a fresh approach” could be discussed following the Chancellor’s Budget on 21 March, as she attacked Labour’s record over bonuses.

He said: “In 2009, the Labour Party signed off £1.3 billion worth of bonuses for Royal Bank of Scotland. That compares with the less than £400m that was approved today.”