POLITICS

Bankers' Bonuses: Government Under Pressure To Tackle Excessive Pay Packets

23/01/2012 06:10 GMT | Updated 23/01/2012 06:10 GMT

The Government will come under greater pressure today to tackle rising youth unemployment and bankers' "excessive" bonuses.

Labour hopes to seize on controversy around reports RBS chief executive Stephen Hester is set to net a £1.6 million bonus from the bailed-out bank and last week's record high of 1.04 million jobless young people.

Speaking ahead of a Labour-led Commons debate this afternoon, shadow chief secretary to the Treasury Rachel Reeves said: "We are already starting to see that David Cameron's promises to rein in excessive bonuses have been just warm words, with multimillion-pound bonuses set to be paid out even at banks bailed out by the taxpayer where the share price has almost halved.

"And there are now a record number of young people out of work, with the number of young people on the dole for more than six months doubling since this time last year."

She said ministers should be "compelled" to rethink their economic plans and called on the coalition to repeat Labour's tax on bank bonuses to fund 100,000 jobs for young people.

Ms Reeves added: "We need a change of course from this Government, whose failing economic plan is leading to £158 billion more borrowing than planned."