By Matthew Barrett
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In a speech to the Federation of Small Business this evening, George Osborne will explain the Government's decision not to block RBS Chief Executive Stephen Hester’s bonus, in order to maintain value for the taxpayer:
"And let me say something about the row over bonuses and pay. Of course we need to reform our banking system – and nobody has done more than this Government to address the too big to fail problem that so offends every taxpayer. Of course rewards for failure are unacceptable – and those who believe in the free market are the first to say so. But a strong, free market economy must be built on rewards for success. There are those who are trying to create an anti-business culture in Britain – and we have to stop them. At stake are not pay packages for a few but jobs and prosperity for the many."
We will post the full text of the speech when it's released.