Prime Minister may remove limit on bonuses of bankers to increase competitiveness of the City | Business newsletter

Chancellor Kwasi Kwarteng is reportedly considering a plan to remove the bankers bonus cap as part of a post-Brexit push to boost the competitiveness of the City and the UK economy.

He thinks the capital cap introduced under EU regulations in 2014 after the 2008 financial crisis and the euro zone’s ensuing debt crisis, will make London a more attractive destination for investors. with top global talent according to the Financial Times.

This measure has always been opposed by the UK on the grounds that it would damage London’s status as a global financial hub.

But the idea of ​​giving up the cap was abandoned by Boris Johnson’s government on the grounds that it would be politically difficult to support wealthy bankers at the time. cost of living crisis.

Mr Kwarteng, appointed prime minister by new prime minister Liz Truss following her victory over No 11 resident Rishi Sunak in the Tory leadership contest, will make the move amid energy bill aid for households and businesses, the FT report added.

He is expected to present to MPs next week the details of further support through the Prime Minister’s long-promised tax cuts to help spur spending and growth in the economy. .

Sky News reported last week that the prime minister is holding talk to the banker to outline the new administration’s approach.

It’s unknown whether a cap flip made an impression on him during that meeting.

Banks have long argued that EU regulation pushes base wages in London to secure talent, making places like New York and Hong Kong more attractive in terms of their fixed costs.

Critics argue that unlimited bonuses only encourage employees to take more risks.

Sky News has contacted the Treasury for the notice.