The mainly taxpayer-owned bank is expected to invoke a new EU rule which would allow it to pay out up to twice an employee's salary - providing shareholders approve it, according to the Financial Times. Labour has now tabled an opposition day motion - to be debated today - calling on the Government as the majority shareholder in RBS to reject any request to raise the bonus cap. The party argues it would be wrong to allow a loss-making, part-nationalised lender to pay such rewards. Shadow treasury chief secretary Chris Leslie said: "At a time when families face a cost-of-living crisis and bank lending to business is falling, it cannot be right for George Osborne to approve a doubling of the bank bonus cap. "It shouldn't have taken the EU to act to rein in excessive bonuses, but there has been no action from the Chancellor here in Britain . "As the majority shareholder, the government should reject any request from RBS to increase the cap. "We will put this to a vote in the House of Commons as part of our opposition day debate on the government's wider failures on banking." Such a move places Mr Osborne , who is challenging the bonus limits in the courts in a bid to protect the City, in a difficult position in that he does not want to be blamed for RBS losing key personnel to better-paying rivals though he is also mindful of Labour's accusation he is standing up for the wrong people. RBS, the FT reported, was not alone in wanting to invoke the new EU rules which would limit a bonus payout to a worker's salary unless shareholders backed an increase. Barclays has already moved to support the bigger rewards but the bank received no state help at the height of the financial crisis and so Government has no means to potentially control its bonus scheme. Sky News learned last week that the new chief executive of RBS, Ross McEwan , was drawing up cost-cutting plans to be announced next month that could result in thousands more job losses at the bank. :: Watch Sky News live on television, on Sky channel 501, Virgin Media channel 602, Freeview channel 82 and Freesat channel 202.
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