RBS ditches Christmas party subsidy

Part taxpayer-owned Royal Bank of Scotland is ditching its Christmas party subsidy for investment bankers as part of a range of cost-cutting measures.

The move was disclosed in an internal memo sent by Chris Kyle, chief financial officer of RBS's investment banking division.

It said the firm will not be subsidising staff entertainment for the rest of the year and that the end-of-year party subsidy, which reportedly stood at £10 a head, will be stopped.

The decision means any Christmas party will have to be funded entirely out of bankers' own pockets.

The 11-point email outlines a range of other changes to be introduced with a view to driving down costs at the 83% state-owned bank.

Bosses have also put a stop to purchases of new BlackBerry phones or other telecoms equipment and the bank is not going to pay for any new magazine or newspaper subscriptions.

Staff members working into the evening have also been informed that RBS will not pay for their taxis home until 10pm and they have been reminded that all travel taking less than four hours must be in economy class.

An RBS spokesman said they would not be making any comment.

PA