Chancellor Kwasi Kwarteng lifts the upper limit for bankers’ bonuses in the mini-budget

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Its mini budget announcement in lower housethe Chancellor said the British economy relied on a “strong financial services sector”.

He confirmed that British government would be the abolition of rules that cap bankers’ bonuses.

The cap was introduced across the EU in 2014 after the global financial crisis.

It capped the amount a banker could receive in bonuses, capping him at twice his annual salary unless shareholders approved.

When Mr Kwarteng announced he was lifting the cap, he was snubbed by Labor MPs while he was applauded by his own backbenchers.

Speaking to the House of Commons, the new Chancellor said: “A strong UK economy has always depended on a strong financial services sector.

“We need global banks that create jobs here, invest in London and pay taxes in London, not in Paris, not in Frankfurt, not in New York.

“All the bonus cap did was increase bankers’ base salaries or boost operations outside of Europe.

“It’s never capped total compensation, so let’s not sit here and pretend it’s any different. So let’s get rid of it.

“And to reaffirm the UK’s status as the world’s financial services hub, I will present an ambitious package of regulatory reforms later this autumn.”

Critics of the cap said it made Britain a less attractive option for the financial sector and drove companies to the US or Asia.

While proponents of the cap warned, uncapped bonuses led bankers to take excessive risks, linking them to the 2008 financial crisis.

https://www.theargus.co.uk/news/22568817.chancellor-kwasi-kwarteng-lifts-cap-bankers-bonuses-mini-budget/?ref=rss Chancellor Kwasi Kwarteng lifts the upper limit for bankers’ bonuses in the mini-budget

Fry Electronics Team

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