City bonus pot forecast up to £6.7bn after ‘dazzling’ trading

City workers are on course for bonuses of about £6.75 billion next year according to a new report that has reignited the row over "extraordinary" banker pay packages.

The "official" forecast for the 2010 bonus pot – which will be paid out in early 2011 – has been increased by think tank the Centre for Economics and Business Research after dazzling sets of first quarter results from investment banks such as Goldman Sachs, Morgan Stanley and JP Morgan.

The figure, to be revealed tomorrow, will increase pressure on Gordon Brown to take strong action to curb the bonuses that have caused such widespread public anger in the wake of the banking collapse and the recession.

Liberal Democrat Treasury spokesman Vince Cable said: "This sum is extraordinary. We must finally clamp down on bankers' pay. Now even the International Monetary Fund is saying bonuses need to be curbed."

The estimated total compares with the £6 billion paid out this year for 2009 and marks a big rise from the low of £4 billion for 2008. The peak years were 2006 and 2007 when City bonuses exceeded £10 billion.

However, the expected total is higher than in 2004 and close to the £7.1 billion of 2005, both regarded as exceptional bumper years at the time.

Mark Hoban, shadow financial secretary, said: "Gordon Brown promised an end to big bonuses. But these figures show it is business as usual for banks under Gordon Brown."

The "pool" is likely to be spread less thinly as there are tens of thousands fewer people working in the City than immediately before the credit crunch.

On the other hand recipients will be paying 50 per cent income tax for the first time if they have earned more than £150,000. Bonuses are forecast to rise to about £7.5 billion in the next two years.