The decision by Chancellor George Osborne and the UK Treasury to vote against the Royal Bank of Scotland’s bonus plans has made headlines this morning. But, in truth, it will matter little to the bank.

RBS was hoping to have the option to pay its senior bankers and traders up to 200% of their fixed pay. European rules now require shareholders to vote on such plans; Barclays got its resolution passed at yesterday's AGM. Now RBS has withdrawn such plans. In its annual report out this morning, RBS says the UK government - which owns 81% of the bank - would vote against the move.