UKFI chiefs to take pay cut

The seven board members of the body which looks after taxpayer stakes in Royal Bank of Scotland and Lloyds and state-owned Northern Rock are taking a 5% pay cut this year.

UKFI chairman Sir David Cooksey said the organisation had already cut its costs substantially but wanted to reflect the Governmnet's desire to reduce publi-sector costs.

He also said the body is still working on how the Government might sell off its stakes in the bailed-out banks.