Clegg takes hard line on bankers' bonuses

BANKERS at loss-making banks would be stopped from receiving discretionary bonuses under measures to be announced by the Liberal Democrats today.

Leader Nick Clegg said it would ensure there were "no rewards for failure" and described some of the bonuses still being paid out as "obscene".

"It's simple: if you're not making money, you shouldn't have a bonus," Mr Clegg will say, accusing Labour of ducking any tough action. "That's just common sense."

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The proposals come the day after the Liberal Democrats placed reform of the "outrageously unfair" tax system at the centre of their election strategy, with Mr Clegg offering a "deal" with the British public by offering tax breaks in order to make swingeing public spending cuts more acceptable.

Under the party's plans, the income tax threshold would be raised to 10,000, putting 700 back in the pocket of the average worker. Mr Clegg said the current tax system was "outrageously unfair" because the bottom 20 per cent of income earners pay a higher proportion of their income in tax.

Yesterday Mr Clegg played down talk of a rift between him and his Treasury spokesman Vince Cable, saying he was "nothing other than proud" of his Treasury spokesman.

In another interview he revealed he was "excited" about appearing in the UK's first-ever election TV debate on Thursday.