Labour would not reinstate a cap on bonuses for bankers if the party wins the general election, the shadow chancellor has said.
The regulations, which limit annual payouts to twice a banker’s salary, were introduced by the EU in 2014 in a bid to avoid excessive risk-taking after the 2008 financial crisis.
Former prime minister Liz Truss and chancellor Kwasi Kwarteng made the decision to scrap the cap on bankers’ bonuses in 2022, which Mr Kwarteng said would encourage global banks to create jobs, invest and pay taxes in the City.
He said the bonus limit was pushing up basic salaries and driving activity outside Europe.
After coming into effect last year, the decision has faced a backlash for rewarding bankers and failing to address cost-of-living concerns affecting households across the UK.
In an interview with the BBC, Ms Reeves, a former Bank of England economist, said she has no intention to reinstate the regulations.
She told the broadcaster: “The cap on bankers’ bonuses was brought in in the aftermath of the global financial crisis and that was the right thing to do to rebuild the public finances.
“But that has gone now and we don’t have any intention of bringing that back.
“And as chancellor of the exchequer, I would want to be a champion of a successful and thriving financial services industry in the UK.”
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