Project Merlin: Banks must reveal pay but no tax on bonuses

Banks will reveal salary details of their highest paid staff and lend businesses £190bn this year under Project Merlin, but their top earners will not be hit with a bonus tax, the government said today.

In the deal hammered out between ministers and the City, banks will increase lending including £76bn to small firms, and improve transparency around staff pay. HSBC, Barclays, Royal Bank of Scotland (RBS) and Lloyds Banking Group have signed up to Project Merlin, while Santander has agreed to the lending parts of the agreement. The Bank of England will monitor whether loans targets were being met. However, Chancellor George Osborne formally ruled out imposing a bonus tax. On Tuesday, the government increased a levy on banks to £2.5bn this year, raising an extra £800m for the p...