Trade unions warned yesterday that the Tories are heralding a return to the “same broken model” that led to the 2008 crash, after news that City fat cats are expecting a 21 per cent rise in bonuses.

Senior financiers told researchers that they expected to see a rise this year from £102,000 on average to £124,000 as firms thrive under Chancellor George Osborne.

Millions of public and private-sector workers may be facing frozen wages or pay cuts, but the financial sector is booming — in part because of billions in public cash has been passed directly into the hands of City institutions.