“We are all in this together” chant our millionaire leaders. Most of the analysis to date suggests that women and the poor will suffer the most. So what happened to all the pre-election promises about tackling the greedy bankers? Today’s Guardian editorial tells it straight.
“Here is what a climbdown looks like. Just over a year ago George Osborne went on GMTV and pre-emptively slammed banks that planned to pay "inexcusable" bonuses. "Let's end the big cash bonuses," he said. "If there's spare cash at the bank it should be lent out to small businesses, medium businesses, to help people keep their jobs."
Scroll forward to this week and the former shadow chancellor is now in No 11, with the power to put his promises into his action. So what does he do? Backtrack. This week it was revealed that Mr Osborne is writing to his counterparts across Europe in an attempt to win support for a common set of rules on bank bonuses. Struggling ministers often opt to kick troublesome policy issues into Brussels' patch, where the grass can grow very long indeed; and it is a fair bet that there will be no action on bonuses before this year's handouts are made in the City – or, for that matter, before next April, when Mr Osborne begins his programme of the sharpest public spending cuts in postwar history. So much for all being in it together.”
“….In many industries, bonuses are a matter of a few hundred quid at the end of a year for a job well done. Not in finance. In July the Financial Services Authority revealed that at least 2,800 bankers in the UK received total remuneration of over £1m in 2009, from a sample of just 13 institutions. Around 1,200 of those were employed by UK banks.”
For how much longer will Vince Cable bite his tongue, swallow his principles and continue to mouth phrases which must taste like the bottom of a budgies cage? At some point, whether it be tuition fees,benefits or Bankers bonuses, the Lib Dems will have to assert themselves. Otherwise they are doomed.
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