City bonuses going on luxury goods

Record bonuses in the City this year are helping to raise demand for luxury items such as expensive gold jewellery and classic sports cars, according to retailers.

Tailors in London's Savile Row have seen a sales increase of ten per cent compared with 2005 and tailor Richard Anderson spoke of a gentleman ordering two blazers made from Himalayan mountain goat hair and decorated with 22-carat gold buttons, setting him back £22,000 in the process.

With bonuses expected to be worth around £8.8 billion, City employees have lots of disposable cash and consequently, top end goods are now subject to a £1 billion spending spree in time for Christmas.

Michael Wainwright, joint managing director of jeweller Boodles, commented: "Sales of over £50,000 are well up due to more wealthy individuals being created in the City. The Royal Exchange store has had its best Christmas ever. Overall, sales are 29.5 per cent up."

It was estimated back in October by the Centre for Economics and Business Research that as many as 4,200 City workers could get a bonus of £1 million or more.