Osborne to make bonuses statement

Chancellor George Osborne is expected to announce the outcome of talks with the banks aimed at curbing bonuses and boosting lending to business.

Whitehall sources said that Mr Osborne was “likely” to make a statement on the so-called Project Merlin talks on Wednesday.

The move follows Tuesday’s announcement by the Chancellor that he was taking a further £800 million this year in the bank levy.

Despite some grumbling from banks, Mr Osborne said that it would “clear the way” for an agreement on Project Merlin.

The Government has been seeking a commitment from the big banks to limit payouts in this year’s forthcoming bonus round.

It has also been seeking an increase in lending to businesses from around £175 billion this year to a reported £190 billion.