Just where is the taxpayer’s money going?
December 8, 2008
Over recent months officials from the government, such as the Prime Minister Gordon Brown and the Chancellor Alistair Darling, have regularly been on our television screens and in the papers telling us about various bailout schemes that are being put into place to bailout the UK’s struggling banks, get the wheels of the mortgage market moving again, and improve the housing slump.
Of course, this money - billions of pounds of it - has to come from somewhere, and the government has decided that it will come from the public purse, which means that the everyday taxpayer is ultimately paying for the banks to be bailed out. Whilst many have not been happy to hear that their money is being used to bail out banks that have got themselves into a financial mess by lending irresponsibly over the past decade, many others have come to the conclusion that whilst it may not be an ideal situation it is something that has to be done in order to get things moving again in the financial markets after a year of problems.
It is little wonder, therefore, that many taxpayers have been outraged to discover than banks that have been taking billions of pounds of our money by way of a ‘bail out’ to increase their liquidity are blowing hundreds of thousands of pounds on lavish parties for employees and executives. Many, unsurprisingly, feel that their hard earned tax money is simply being blown by banks on enjoying themselves, and whilst many of is struggle to keep on top of mortgage and bill repayments banks such as RBS are throwing money down the drain on drinks, canopes, and merriment at some of the most lavish venues in the country.
In fact, RBS is a prime example of this situation. Just a month after taking £20 billion of taxpayers money to bail them out, officials at RBS blew £300,000 on a lavish bash for employees, which was held at a five star hotel in Edinburgh. If that was not bad enough, it has now emerged that just a week later it has thrown a £30,000 party for executives, paying out thousands of pounds to hire out the posh Blenheim Palace in London, and spending thousands more on accommodation, transportation, champagne, and posh nosh.
In fact, reports claim that executives that attended the function were put up at a £200 a night hotel near to the venue, and those caught going into the hotel tried to hide their enjoyment having spent the night dancing away and literally eating and drinking the taxpayers’ money.
An official from the Lib Dem party was disgusted, stating: ‘While they dance the night away, others are desperately trying to pay mortgages. It is a completely inappropriate use of what is taxpayers’ money.’
However, one guest that was questioned about the party said: ‘They still have to keep on going. I saw heads of state last night on television with a glass of champagne in their hands. Life goes on.’
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