The figures are likely to inflame the debate over banking industry pay at a time when banks are under fire for not doing enough to support the UK economy.

Lord Oakeshott, Liberal Democrat Treasury spokesman, said: "It's bonuses for bankers and cuts and cutbacks for everyone else.

"The real tragedy is that bankers are helping themselves to bonuses at a time when many small businesses and first-time home buyers can't get a loan."

Last week, Britain's five largest banks reported financial results that showed they had made combined pre-tax profits of £15bn in the first six months of the year.

The return to profitability of the banks, with Royal Bank of Scotland making its first profit since 2007, has increased the pressure on banks to increase their lending to small and medium- sized businesses, many of which complain they are having loan applications turned down.

Angela Knight, chief executive of the British Bankers' Association (BBA), said: "Bank bonuses in the UK are subject to more stringent government control than anywhere else in the world - and are taxed accordingly.

"Banking and financial services are major employers, which is reflected in the overall pay bill. We all know that large bonuses are paid to only a small percentage of highly internationally mobile staff."

In a Mansion House speech last month Mark Hoban, Financial Secretary to the Treasury, told an audience of BBA delegates that the industry's remuneration system required reform.

"I don't need to tell you that the next bonus round will be conducted against a background of continued pressure in the private sector," he said, adding that the Financial Services Authority would be reviewing its pay code.

Financial sector bonuses in the latest period were 39pc higher than at the start of the decade, according to the ONS, with £3.9bn being paid out in February alone. The results also show that UK banks are continuing to put aside billions of pounds to pay bonuses to staff working in their investment banking arms.

Barclays said last week it had hived off £1.7bn for bonuses so far this year, the majority of which will go to staff at Barclays Capital, the bank's investment banking division.

Despite the large bonuses paid to investment bankers, British banks complain that the new rules on employee remuneration could put them at a marked disadvantage against international competitors.

Stephen Hester, chief executive of RBS, said the bank was struggling to retain some of the best employees in its Global Banking and Market (GBM) division, which houses its investment banking operations.

Mr Hester said staff numbers in GBM were down partly as a result of the bank's inability to be able to pay the amounts required to lure the type of people it wants to hire.

Peter Sands, chief executive of Standard Chartered, made a similar complaint, warning that the case for the bank basing itself in London had "weakened" in the last year as a result of new rules on pay.

Ms Knight said: "While the industry seeks to reward success and to discourage foolhardy risk-taking, key staff need to be rewarded or our competitors will snap them up."

Lord Oakeshott had little time for these arguments and said he hoped the new independent commission on the banking industry would get to grips with the issue of pay.

"Competition and market discipline seem to have broken down in the banking sector," he said.

Source >  Telegraph