Bankers, bonuses and Brown's gloom

Mr Balls's desire, as former right-hand man of Gordon Brown at the Treasury, to speak out on the economy despite his day job in education, is understandable. However, his comments, including an apocalyptic hint that the politics of fascism could return, are far from sensible at a difficult moment.

As the chairmen and chief executives of Royal Bank of Scotland and HBOS prepare to explain to MPs today why their banks had to be rescued by the taxpayer, anger over these banks' use of public money to pay bonuses has reached a new pitch. The Mayor, Boris Johnson, despite earlier pleas for sympathy for the City, today adds his voice to the sense of injustice. Belatedly, the Treasury is hinting at a £25,000 cap on cash payments but this may not be enforceable. Cancelling contractual payments is not easy - but if there is scope for a cap, we should have been told earlier.

The Treasury should have gone onto the offensive with an announcement days ago that it was sending in a team of lawyers to the part-nationalised banks to examine every means of crimping discretionary awards and keeping contracted payments to the bare minimum, preferably in shares not cash. Instead, Mr Brown's announcement of an inquiry taking many months, under bonus beneficiary Sir David Walker, looks flat-footed, especially compared to President Barack Obama's simple $500,000 pay cap for taxpayer-assisted institutions.

As for Mr Balls's comments, they demonstrate that the Government is still failing to strike the right note of leadership. This is a problem too for the other parties, which cannot afford to look gloating as recession drives down Labour's poll position - 14 points behind the Conservatives in a Times/Populus survey today. But most of all it is a challenge for the Government. Its belated response to anger over bank bonuses and hint of panic over the economy suggest disarray at the top.

Olympic struggle

As the Mayor prepares to unveil his plan for the Olympic site's legacy today, we report on the problems still afflicting purchase of the land for the Olympic park. In particular, dozens of business that were forced to sell their land to the London Development Agency have not been properly compensated. This sets an unhappy precedent.

In total, 76 of the 193 companies previously located on the site - more than 40 per cent - have not been fully reimbursed. The LDA was supposed to find alternative premises for the companies after buying up the 500-acre site, the largest such relocation process in the UK. But after years of uncertainty and wrangling, many companies say they still have not been paid in full for the purchase of their land and for moving costs, while others say they were forced to accept low offers from the agency.

The row is a reminder that the Olympic site was not disused land: whatever the grand plans, it was home to thriving businesses before. They deserve proper compensation for the upheaval. Meanwhile, the LDA's task in managing the site has only just begun: it must avoid high-handed behaviour if it is to maintain London's trust in this huge regeneration project.

Chelsea blues

Love them or hate them, at least Chelsea's men can be relied upon for some drama off the pitch. The mid-season sacking of manager Luiz Felipe Scolari followed a revolt by the stars and by the fans. But booting out the manager adds to the club's reputation for entertaining Londoners. Finding a fourth new name capable of restoring fortunes at Stamford Bridge will be harder work.