Kwarteng considering removing cap on bankers’ bonuses as part of City shake-up

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The limit, introduced in 2014 by the European Union in response to the 2008 financial crash, limits bankers’ bonuses to twice their wages

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Hanseler Quasi Quarteng is considering removing caps on bankers’ bonuses to prevent brainwashing of top city officials in international financial centers, including Paris.

The cap, introduced in 2014 by the European Union in response to the 2008 financial crash, restricts bankers’ bonuses to double their wages.

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Although removing it would be considered insensitive at a time when millions of families are facing a living crisis, Mr Quarteng is understood to demonstrate the UK’s independence to break EU rules and promote economic growth after Brexit. To want to eliminate the cap. ,

Standard understands that the chancellor also wants to remove the cap to make the city more attractive to top financial sector workers, who may be tempted to head to New York and other global finance hubs such as Frankfurt and Paris.

The French government provides incentives to foreign bankers that allow them to treat 30 percent of their net salary as a “longitude bonus”, which is tax-free.

Mr. Quarteng is preparing to announce plans to reverse the 1.25 percentage point increase in national insurance and increase corporation tax from 19 percent to 25 percent next year in next week’s mini budget.

Although the Chancellor and Prime Minister will present the move as part of their agenda to spur economic growth, it will face stiff resistance from Labor and other opposition parties.

After reports in June that then-Prime Minister Boris Johnson was considering removing the cap, Labor leader Sir Keir Starmer said his “new approach” was “wage increases for bankers, pay cuts for district nurses”.

Meanwhile No 10 has said the energy price freeze for businesses facing rising bills will return in October amid concerns it could be delayed.

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