Slash Fat Cat Pay Or You apos;ll Get No Bailout Cash Firms Are Warned

Vital businesses that require coronavirus bailouts from the Government will be told to slash fat cat pay and cut their carbon emissions, the Chancellor has warned.
As part of Project Birch, officials at the Treasury are in discussions with 'strategically important' firms that are in trouble but do not meet the requirements for other rescue schemes.
Celsa Steel became the first business to win support last week, securing a £30million loan to safeguard some 1,000 jobs in South Wales.
Hands out: Car maker Jaguar 4.2 engine rebuild Land Rover is reportedly among the firms which are seeking a bailout from the Government
And car maker Jaguar Land Rover (JLR) is reportedly among the other firms which are seeking support.
RELATED ARTICLES [# Previous] [# 1] [# Next] [/money/news/article-8502071/Government-unveils-new-scheme-designed-young-job-hunters-work.html 'Will we be let go after six months?': Jobseekers give...] [/money/comment/article-8503689/ALEX-BRUMMER-Britains-global-reach.html ALEX BRUMMER: Britain's tradition of playing a role on the...] [/money/news/article-8503761/Chancellor-dishes-help-hospitality-boost-jobs.html Chancellor dishes up help for hospitality and offers a leg...] [/money/markets/article-8503781/Stricken-shops-left-Chancellors-30bn-stimulus-package.html Stricken shops are left out of the Chancellor's £30bn...] Share this article Share But Chancellor Rishi Sunak told MPs that firms coming cap in hand to the taxpayer would be made to follow strict conditions on pay and other issues.
He said: 'It is right that we impose conditions on those businesses.

Without going into the details, such interventions will come with conditions: around executive pay, protecting employment, climate change, how supply chain and small businesses are treated and obligations around tax.
'Those are all commitments and conditions that the taxpayer would expect us to do in those situations.
'That is what we have done in the one instance where support has been provided thus far and is what we will do for any future support.'
Project Birch - now rechristened the Last Resort Business Interventions Process - was set up to help important UK businesses that do not qualify for other financial support schemes.
The Treasury is said to have held 'advanced' discussions with six companies seeking support, including Celsa Steel and JLR, according to the Financial Times.
However it is understood that businesses that get bailouts will face similar conditions to those imposed on others who have used the Coronavirus Large Business Interruption Loan Scheme.
Those firms using that scheme face curbs on paying dividends and share buybacks but can still pay bonuses or increase salaries of executives if they were arranged before taking the loan.
However companies must prove that paying bonuses will not have a material negative impact on their ability to repay the loan.
Celsa Steel bosses are understood to have accepted cuts to pay as part of a bailout.
Rescued firms will also be asked to reduce carbon emissions to 'net zero' by 2050, a policy the Government is signed up to, and must be compliant with tax rules.
The strict measures come after Gordon Brown's Labour government was humiliated in the wake of the 2008 financial crisis, when banks such as Royal Bank of Scotland still handed out huge bonuses after receiving taxpayer-funded bailouts.


#fiveDealsWidget .dealItemTitle#mobile display:none
#fiveDealsWidget display:block; float:left; clear:both; max-width:636px; margin:0; padding:0; line-height:120%; font-size:12px
#fiveDealsWidget div, #fiveDealsWidget a margin:0; padding:0; line-height:120%; text-decoration: none; font-family:Arial, Helvetica ,sans-serif
#fiveDealsWidget .widgetTitleBox display:block; float:left; width:100%; background-color:#af1e1e;
#fiveDealsWidget .widgetTitle color:#fff; text-transform: uppercase; font-size:18px; font-weight:bold; margin:6px 10px 4px 10px;

#fiveDealsWidget a.dealItem float:left; display:block; width:124px; margin-right:4px; margin-top:5px; background-color: #e3e3e3; min-height:200px;
#fiveDealsWidget a.dealItem#last margin-right:0
#fiveDealsWidget .dealItemTitle display:block; margin:10px 5px; color:#000; font-weight:bold
#fiveDealsWidget .dealItemImage, #fiveDealsWidget .dealItemImage img float:left; display:block; margin:0; padding:0
#fiveDealsWidget .dealItemImage border:1px solid #ccc
#fiveDealsWidget .dealItemImage img width:100%; height:auto

#fiveDealsWidget .dealItemdesc float:left; display:block; color:#004db3; font-weight:bold; margin:5px;
#fiveDealsWidget .dealItemRate float:left; display:block; color:#000; margin:5px
#fiveDealsWidget .footerText a:hovertext-decoration: underline;
#fiveDealsWidget .footerSmallfont-size:10px; padding-top:10px;
@media (max-width: 635px)
#fiveDealsWidget a.dealItem width:19%; margin-right:1%
#fiveDealsWidget a.dealItem#last width:20%

@media (max-width: 560px)
#fiveDealsWidget #desktop display:none;

#fiveDealsWidget #mobile display:block!important
#fiveDealsWidget a.dealItem background-color: #fff; height:auto; min-height:auto
#fiveDealsWidget a.dealItem border-bottom:1px solid #ececec; margin-bottom:5px; padding-bottom:10px
#fiveDealsWidget a.dealItem#last border-bottom:0px solid #ececec; margin-bottom:5px; padding-bottom:0px
#fiveDealsWidget a.dealItem, #fiveDealsWidget a.dealItem#last width:100%
#fiveDealsWidget .dealItemContent, #fiveDealsWidget .dealItemImage float:left; display:inline-block

#fiveDealsWidget .dealItemImage width:35%; margin-right:1%
#fiveDealsWidget .dealItemContent width:63%
#fiveDealsWidget .dealItemTitle margin: 0px 5px 5px; font-size:16px
#fiveDealsWidget .dealItemContent .dealItemdesc, #fiveDealsWidget .dealItemContent .dealItemRate clear:both

TOP DIY INVESTING PLATFORMS [ Low cost portfolios Low cost portfolios Cheap funds fee Deal online from £1.50] [ Investment ideas Free fund dealing Free fund dealing Annual 0.45 per cent account charge] [ Free investing No fees £9.99 flat fee One free trade per month] [ Flat fees Great service Fixed monthly cost Dealing from £7.50] [ Model portfolios Model portfolios £45 per year No fund dealing charges] [ > Compare the best investing platform for you]