Govt refuses to block further RBS bonuses

The government has rejected calls to block bonuses for top earners at Royal Bank of Scotland (RBS).

The announcement comes after RBS chief executive Stephen Hester turned down a £1m bonus after public outcry over the payment.

The government said today that it would not "micromanage" RBS and that remuneration for members of staff was an issue for the taxpayer-owned bank itself, the BBC reports.

It refused to block bonus payments to other top RBS bankers as proposed by Labour leader Ed Miliband.

A government spokesperson said: "The prime minister's view was that he wanted the bonuses to be lower.

"He always made it clear that it was a matter for Mr Hester whether he took that bonus or not, and that should remain the case.

"Reward for good performance is not in itself a bad thing."

Chancellor George Osborne welcomed Hester's move to give up his bonus as a "sensible" decision.