§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what effect the increase in bonuses paid in the City in 1994 had on the increase in average earnings; and what proposals he has to restrict such bonuses.
§ Mr. NelsonThe large rise in bonuses in the financial sector in the first quarter of 1994 contributed to the rise in whole economy underlying average earnings growth, but it is not possible to say by exactly how much. Underlying average earnings growth has since fallen back, from 4 per cent. in March to 3⅔ per cent. in April and May.
Bonus payments are a matter for individual firms and their employees.