THE GUARDIAN: Executives fuel spiralling demand for luxury goods amid growing inequality
City bonuses have increased by 30% to a record £14bn this year. The rise is twice as big as in 2006 and likely to exacerbate the widening gap between executive and shop-floor pay. The bonuses come against a background of record debt, rising bankruptcies and home repossessions.
Analysis by the Guardian of preliminary data from the Office for National Statistics (ONS) shows that bonuses across the economy rose 24% this spring to £26.4bn, comfortably exceeding the country's entire transport budget. More than half, £14.1bn, was earned by the 1 million people in the financial services sector. The figure for 2006 bonuses was £10.9bn.
The bonuses have fuelled unprecedented demand for luxury goods and high-end property. Bonuses are regularly cited by estate agents as a key factor in pushing up property prices in London. City bonuses hit record high with £14bn payout (more) By Ashley Seager
Mark Alexander
