General union GMB called on Business Secretary Vince Cable yesterday to toughen up over city fat cats’ bonuses following his letter urging business to “show restraint” over pay.

Mr Cable wrote to top companies calling on business giants to slash bonuses to restore public trust.

But Mr Kenny said that Mr Cable had “the same chance as King Canute rolling back the waves as getting the city fat cats to voluntarily take their snouts out of the bonus troughs.”

Instead the government should raise the marginal tax rate for earnings above £1 million a year to 80 per cent, which Mr Kenny argued would see a “dramatic drop” in numbers getting paid that amount and leave more for the rest of the workforce.

It could also help curb zero-hours contracts, bogus self-employment, agency and temporary work, very short hours part-time jobs, flexible and casual employment.

He added: “This would help the economy to get back to pre-recession levels as we have a very long way to go to climb out of the hole caused by the recession.”