RBS pay rises 'will be vetoed' - PM

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Prime Minister David Cameron has said he will veto any proposal to increase overall pay at the investment arm of the Royal Bank of Scotland.

Mr Cameron also confirmed that the £2,000 cap on cash bonuses at the predominantly government-owned bank will continue to apply next year.

He was challenged by opposition leader Ed Miliband over reports that RBS is proposing to invoke an EU rule to allow it to pay bonuses up to to double its staff's annual salary.

Mr Miliband asked the PM whether he would "put at stop to it right now" and tell the bank to "drop the idea" during exchanges at prime minister's questions on 15 January 2014.

Mr Cameron said: "I can confirm today that just as we have had limits on cash bonuses of £2,000 at RBS this year and last year, we will do the same next year as well."

He added: "If there are any proposals to increase the overall pay, that is pay and bonus bill at RBS, at the investment bank, any proposals for that, we will veto it."

Mr Miliband later turned his attention to housing supply, and claimed house completions are at their lowest level since 1924.

He accused the prime minister of not doing enough to close the gap between supply and demand, and said 100,000 fewer new homes are being built each year.

Responding, Mr Cameron insisted his government's planning policies were working. He told MPs 400,000 new homes have been delivered since 2010, with a 16% increase in housing starts over the past 12 months.

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