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RBS plan for 200% bonuses blocked by Treasury body

25 April 2014 Last updated at 13:46 BST

Royal Bank of Scotland has abandoned attempts to pay bonuses twice the size of salaries after being told the move would not be approved by the Treasury.

"The new team at RBS have done a huge amount to repair what went so badly wrong in that bank, but there's still a long way to go," Chancellor George Osborne told the BBC's business editor Kamal Ahmed.

"We made it clear that in the circumstances it was not right to increase the bonus cap. I'm glad that RBS have agreed with that," Mr Osborne added.

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