Back in early June, we reported that IT Contractors at Barclays Capital and Merill Lynch were to subjected to 10% and 11% contract rate cuts respectively. Since then, many more City banks have implemented similar policies.

Now it appears that Barclays are going to inflict a 10% cut across all business divisions. Those contractors who haven't accepted the cut will be asked to leave at the end of August.

Tech site, The Register, also suggests that contractors at HBOS are also soon to be "offered" a rate cut, or a swift departure.

Perhaps the HBOS bosses hope to make up some of the £2bn drop in their latest results...

Given the state of the UK economy, and recent results of the major banks in particular, these rate cuts come as no surprise to many - especially contractors who remember previous downturns when mass contractor culls were sometimes the order of the day rather than rate cuts.