The bankers’ bonus cap, which limits the pay of top City executives, could be scrapped in order to encourage our capital’s global competitiveness says new Chancellor Kwasi Kwarteng.
The cap, which was brought in as part of EU-wide efforts after the financial crisis, has long been criticised as a stranglehold on London’s competitiveness.
Chancellor Kwarteng wants to scrap the cap as part of efforts to revitalise the City and give London a competitive edge over European rivals, according to reports in the Financial Times.
Last month Prime Minister Liz Truss said London is a “jewel in the crown of the UK economy but for too long its potential has been held back by onerous EU regulation, which have stifled growth and stunted investment.”
Whilst the cap means that the UK is in line with European markets, City experts have complained that it has allowed New York and Singapore get ahead in attracting the very top talent.
Liz Truss’s Chancellor has promised a growth-focused shake-up of the economy and told City bosses last week: “We need to be decisive and do things differently.”
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