Chancellor Kwasi Kwarteng has come under fire for considering scrapping the cap on bankersâ 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 bankerâs 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 Sachsâ international operations, told the Financial Times eliminating the bonus cap would make âLondon a more attractive place for sureâ.
Rake it in
TUC general secretary Frances OâGrady said: âBonuses in the City are already at a record high.
âWhile City executives rake it in, millions are struggling to keep their heads above water.
âWorking people are being walloped by soaring prices after the longest and harshest wage squeeze in modern history.
âThe Chancellorâs number one priority should be getting wages rising for everyone â not boosting bumper bonuses for those at the top.â
Reactions
It wasn’t ust the TUC who didn’t take kindly to the news:
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Related: Treasury âconsidering removing cap on bankersâ bonuses as part of City shake-upâ