Pay Bankers the same as Civil Servants- Steve Hilton

Steve Hilton said any companies that would require a state bailout should they "go wrong" should be considered part of the public sector.

Mr Hilton said such a move would be a "powerful incentive" for reform.

Top civil servants receive £100,000 to £200,000 a year compared to multi-million pound salaries for bank bosses. 

Mr Hilton told the BBC's business editor Kamal Ahmed that capping pay at banks who rely on the implicit backstop of state funding should they fail - which he says the largest banks do - would mean "they might decide to split themselves up or we could do that forcibly.

"The goal here is to create a much more secure financial system where you don't have these giant companies that pose a threat to the whole economy."