Despite our Darling Chancellor being urged to introduce a ‘maximum wage’ in the City, bonuses look safe for now. Mr Darling made noises about legislating to curb massive bonuses but in reality it looks more like another crowd pleaser.

A coalition of Labour MPs, unions and Lib-Dem Treasury spokesman Vince Cable tried to put the Chancellor under pressure to cap the pay of the highest earners. Proposals included a 90 per cent tax on megabonuses and a ‘maximum wage ration’ forcing firms to link their top salaries to their lowest earners.

Teleprompter tough guys…

Despite manly sounds about dealing with the bonus culture from both Labour and the Tories, it doesn’t look like Daring Darling or Gorgeous George were too impressed with these ideas (from the BBC):

Mr Darling said, “Generally, I think that pay agreements ought to be reached by employers and employees meeting together.”

George Osbourne said: “It is one thing ensuring city pay structures don’t jeopardise the banking system – and quite another trying to reintroduce a prices and incomes policy across the economy.”

As for chaps in the City: Tim Linacre, chief executive of Panmure Gordon investment bank, warned that tough curbs could lead to a flight of talent abroad (from the Mail):

‘The City is holding its head in its hands about how the Government could be so stupid.’