RBS overdrawn

And as many are still struggling to pay their heating bills in the aftermath of the recession, the announcement that state-owned bank RBS –one of the worst offenders in the City that dragged the country into such a financial mess – would be dishing out 1.6bn in staff bonuses sent a further shiver down the spine.

The taxpayers who own 86 per cent of RBS would be entitled to think that the company had made a hefty profit to justify these payments. They were wrong. The bank was actually celebrating a 3.6bn loss.

While it is clear RBS must offer some incentives to retain skilled staff, City executives must soon accept that their actions are totally out of touch with the public mood.

One reason RBS achieved these "improved" results was that the bank's priorities came before the interests of those small businesses, many of whom were denied assistance during their hour of need.

The gesture from chief executive Stephen Hester to waive his 1.6m bonus was welcome and he appears to be slowly turning the ship away from the disastrous route navigated by Sir Fred Goodwin – the man who left the bank with a crippling 24.3bn deficit, the largest in UK corporate history.

But surely there can be a way to attract quality people that does not involve rubbing the noses of the recession-hit public in a mess that was created by the banks in the first place?