Lib Dems: Performance 'undermined' by bonuses

The Liberal Democrat party has joined a chorus of criticism following confirmation from the Treasury of large pay increases and bonuses for senior staff at HM Revenue and Customs (HMRC).

Bonuses for some members of the HMRC increased by some 60 per cent during 2007; despite widespread problems - with VAT targets failing to be met and tax credit confusion on the rise.

The situation continues to "undermine" efficiency in the department, according to the Liberal Democrats.

"It is clear the days of prudence in the Treasury are well and truly over," said Lib Dem economic spokesman, Vince Cable.

"With millions of personal records lost, a tax credit system in chaos and the debacle of Northern Rock, why on earth does the Treasury think it is appropriate to increase staff bonuses by 60 per cent?"

Dramatic improvements need to be made in order to justify the bonuses, continued the party.

"Performance related pay is entirely undermined when swathes of staff receive large bonuses regardless of performance. The Treasury has been a failing department for several years and bonus payments should reflect that," concluded Mr Cable.