Morning papers: Barclays boss on back foot over bonuses

Barclays chief executive Antony Jenkins faced criticism from MPs yesterday (11 January) when he announced a 10 per cent increase in bonus payouts despite falling profits and the prospect of 12,000 job cuts, the Financial Times reports.

According to the paper Mr Jenkins was seen by MPs as a fresh start when he replaced his predecessor Bob Diamond. However, his favour may have evaporated following his announcement of a £2.38bn bonus pool, which the Institute of Directors said was “nearly three times bigger than the total dividend payout to the company’s owners”.

Speaking in the wake of a Treasury Select Committee evidence session with Prudential Regulation Authority chief Andrew Bailey, committee chairman Andrew Tyrie MP: “Barclays’ bonus deferral, at three years, looks too short. Shareholders also need to make up their minds whether aggregate remuneration is justified by the return on equity.”

Article continues after advert

All parties signal end of pound hopes for Salmond

All of three main political parties in Westminster look set to send the message that Scotland would lose the use of the pound as its currency if it becomes independent after September’s referendum, the Guardian reports.

At a press conference yesterday, prime minister David Cameron said chancellor George Osborne is set to reject the notion of a currency union and the paper reports that Lib Dem chief secretary to the Treasury Danny Alexander and shadow chancellor Ed Balls will deliver similar warnings.

Home insurance set to soar after floods

Homeowners could face higher insurance premiums as insurers try to recoup £1bn of losses resulting from flood payouts, the Daily Mail reports.

According to the paper, rates could rise by an average of £19 a year, although the amount paid by claiming customers in flood-hit areas could rise my more than that.

Thousands unlawfully charged ‘bedroom tax’

The Independent reports that more than 16,000 people have wrongly had their benefits cut and thus been forced to pay ‘bedroom tax’.

Freedom of information requests by Labour to 140 local authorities showed that the number of people who have erroneously had their benefits cut was more than three times government predictions, the paper states.

OECD overlooked weak banks

The Organisation for Economic Co-operation and Development has admitted that it neglected to account for a weaker banking system and bigger cross-border shocks between 2007 and 2012 leading to forecasting errors, the Telegraph reports.

According to the OECD, the drive for austerity in Europe has had less of an effect on growth than broken banks and restrictive regulation. The paper reports the OECD admitted these factors contributed more to forecasting errors than the impact of austerity.