Deep division over bank inquiry

Labour leader Ed Miliband has stepped up demands for a full judicial inquiry into the banking scandal, warning the public is in no mood for an "establishment cover-up". The Government wants a rapid, cross-party inquiry by MPs and peers.

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PM says bonus system 'needs to change fundamentally'

The bonus system in the civil service needs a fundamental overhaul, so that departments which do not meet targets do not get rewards, the Prime Minister told MPs today David Cameron said that he wanted only "genuine excellence" to be rewarded with a bonus.

David Cameron says 'bonus system needs to change' Credit: PA Wire

Addressing the House of Commons liaison committee on the Government's civil service reform programme today, he said: "We have changed the bonus culture in the civil service but I agree that if divisions and departments don't perform, there should not be bonuses.

"I think we need to change the whole system more fundamentally." Mr Cameron said that he was weighing up options in introducing an 'earnback' scheme, but he was not "mad" about the idea.

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