Osborne contradicts himself

CHANCELLOR George Osborne is giving the City mixed messages.

While condemning the Libor scandal, he is apparently gearing up to fight for the right of British banks to pay big bonuses.

Osborne is expected to oppose any plans by Brussels to cap bankers bonuses at a maximum of 100 per cent of salary. This is likely to be discussed at some point during this week’s European finance ministers meeting.

Britain believes that capping bonuses will drive business and people to rival financial centres such as Hong Kong or New York.

The opposition to such rigid curbs has arrived when the relationship between the City and Westminster comes under strain as the fallout from the rate-rigging scandal continues.

The finance ministers meeting will be closely watched for signs as to how the Government will approach regulation in the wake of the rate-rigging scandal. So far, the City must be breathing a sigh of relief.

I can only conclude the Treasury is mindful of its tax take, 10 per cent of which is generated by the City. WITH Dragon’s Den star Theo Paphitis set to acquire Robert Dyas, it will be interesting to see what he plans for the hardware store business with a troubled recent history.

Since 2009 Robert Dyas has been owned by its lenders Lloyds Banking Group and Allied Irish Bank, who seized control after it struggled to meet its debt repayments.

Last December, chief executive Steve McVey resigned after just five months at the helm.

Pathitis is expected to announce that he is buying the 140-year- old chain from Lloyds and Allied Irish for £10 million this week. He thinks the 100 Robert Dyas stores he is acquiring will be a good fit with his stationary chain Ryman. For the sake of the 1,200 Robert Dyas employees he’s taking on and for the health of the High Street, I hope he is right.

The portents are good; last year the chain made underlying profit of £3 million.

tracey.boles@express.co.uk