“The UK already has more millionaire bankers than the whole of the EU put together yet our economy is stagnant and our public services are in crisis.” Director, High Pay Centre.

Fizzy Liz and many Tories still believe in the magic of “trickle down economics”. Do you? – Owl

Cap on bankers’ bonuses scrapped as UK brings back Liz Truss policy

THE UK Government has revived a policy from the short-lived Liz Truss administration and will scrap the cap on bankers’ bonuses.

Xander Elliards www.thenational.scot

The Financial Times reported that the Tories would imminently ditch the rule which limits banker bonuses to double their annual salary.

The EU rule will be scrapped in an effort to improve the attractiveness of London post-Brexit, FT said, in reasoning which reflects words from Kwasi Kwarteng during his brief time as chancellor.

The new rules will come into effect from October 31, the Financial Conduct Authority (FCA) said.

The news has been greeted with anger, with Green MP Caroline Lucas saying it showed the UK Government’s true priorities.

“In case you were wondering what this Govt’s priorities were, look no further,” Lucas wrote.

“Ministers are now planning to scrap the EU cap on bankers’ bonuses.

“More money for city fatcats in the middle of a cost of living scandal – post-Brexit Britain in a nutshell.”

Economist Professor Richard Murphy also commented: “As if evidence was required that Tory UK is run for the benefit of bankers …”

When the cap on bankers’ bonuses was put forward by the Truss government, Labour leader Keir Starmer (below) opposed the decision.

He told the Mirror in September 2022: “Removing the cap on bankers’ bonuses when people are really struggling to pay their bills shows the Tories are absolutely tone deaf to what so many people are going through.”

Starmer had previously claimed the policy amounted to “pay rises for bankers, pay cuts for district nurses”.

Since then however, Labour have embarked on a mission to charm the City of London’s bankers ahead of the next General Election and it remains to be seen if Starmer will continue to oppose the move.

The FCA stated: “The bonus cap does not limit total remuneration but limits the variable remuneration a firm can pay relative to an individual’s fixed pay.

“This has the effect of limiting the proportion of remuneration that can be adjusted by risk and performance measures.”