International Bank Bonus rules “Better for Britain” says George Osbourne

Mr Osborne said he was prepared to let European legislators take the lead on areas such as bonus disclosure, a move that is sure to be welcomed by many in the City, but could anger some Liberal Democrats.

"There are European rules that are being developed in this area and it might be better for Britain to promote this internationally rather than just unilaterally" Mr Osbourne stated in an interview.

Coalition Business Secretary Vince Cable insists the UK must take a stand against excessive bonuses, regardless of whether other financial centres follow suit.Mr Cable has backed proposals brought up by Sir David Walker in last year's pay review that would force banks to disclose more information on the amounts they pay out in bonuses each year, in particular the number of staff paid bonuses of £1m or more.European regulators are also considering disclosure rules as part of the up-coming Capital Requirements Directive.Sir David has also conceded that the Government "would be mistaken" to act unilaterally.