Cap on bankers’ bonuses could be scrapped and it’s gone down as you would expect

Chancellor Kwasi Kwarteng has come under fire for considering scrapping the cap on bankers’ bonuses, as millions struggle during the cost-of-living crisis.

Unions and economists were among those criticising the timing of the proposal to remove the cap, introduced in the wake of the 2008 financial crisis, that limits annual pay-outs to twice a banker’s salary.

Sources close to Mr Kwarteng said no final decisions had been made, but suggested such a move as part of a wider post-Brexit overhaul of City regulations would make London a more attractive place for global banks.

Richard Gnodde, head of Goldman Sachs’ international operations, told the Financial Times eliminating the bonus cap would make “London a more attractive place for sure”.

Rake it in

TUC general secretary Frances O’Grady said: “Bonuses in the City are already at a record high.

“While City executives rake it in, millions are struggling to keep their heads above water.

“Working people are being walloped by soaring prices after the longest and harshest wage squeeze in modern history.

“The Chancellor’s number one priority should be getting wages rising for everyone – not boosting bumper bonuses for those at the top.”

Reactions

It wasn’t ust the TUC who didn’t take kindly to the news:

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Related: Treasury ‘considering removing cap on bankers’ bonuses as part of City shake-up’