Now the Royal Bank of Scotland and HBoS are being accused of wasting thousands of pounds by cancelling events at the last minute.

Hotel sources say that the banks are liable for 100 per cent of the costs of many of the events they have cancelled in recent days.

They say that the two Edinburgh-based companies are calling off pre-arranged parties only because they fear a public backlash about spending – but they're not actually saving any money.

It is understood that RBS has cancelled another Christmas party for more than 100 people, which was due to take place at the Roxburghe Hotel.

Yet as the bank only called off the November 27 party at the end of last week, it will still face a bill of around £7000 for the event, which was also to include accommodation for around 20 staff based outside Edinburgh.

One hotel source said today: "They are cancelling these parties because it looks like they are being the ultimate Scrooge to save money, which looks good in the current climate.

"In most cases they are cancelling them because they fear the public backlash, yet they are still going to have to pay.

"Anybody who cancels faces a cancellation charge and, this late in the day, it will be 100 per cent for most hotels."

Details of a number of glitzy bank parties have emerged in the last fortnight, with the spending causing outrage at a time when both RBS and HBoS are being rescued by an injection of Government funds.

It was revealed last week that a £1 million budget has been set aside for RBS Christmas parties, with each employee allowed £10-per-head. HBoS said it allowed a "modest" amount on a departmental basis.

A spokesman for the Edinburgh Principal Hotels Association said: "Christmas bookings are inevitably going to be prepaid and will have cancellation terms.

"It is the same as when people cancel bedrooms. The hotels need to be able to forecast what stock they need and arrange staffing.

"The big companies like RBS and HBoS are spending less and that is affecting all industries."

A spokeswoman for RBS said: "We are, as you would expect, re-assessing some planned events, which includes cancelling those that are not appropriate in the current environment."

SNP MSP Alex Neil, a member of the Scottish Parliament's finance committee, said: "The directors should be treating their staff out of their own bonuses."

Nobody at the Roxburghe Hotel was willing to comment on the November 27 event.