Continuing the discussion from Liz Truss defends plan to lift cap on bankers’ bonuses:
The plan was announced by former chancellor Kwasi Kwarteng last year as a way of making London a more attractive place to do business. It was one of the few mini-budget policies to remain after most were unwound by Mr Kwarteng’s successor. The cap on bonuses will be lifted from 31 October, the regulator said.
Introduced in 2014 when the UK was part of the EU, the cap was designed to curb excessive risk taking in the financial services industry in the wake of the 2008 financial crash. The cap limited the variable pay of employees of banks, building societies and investment firms to twice their base pay.
Finance bosses have long complained about the rules, saying they lead to higher base pay that pushes up banks’ fixed costs. (1) Those costs cannot be adjusted in line with the firm’s financial performance, they add, making it to cut costs during a downturn. (1)
Darren Jones, Labour’s shadow chief secretary to the treasury, said the decision “tells you everything you need to know” about the priorities of the government. “Rishi Sunak is marking his anniversary of becoming Prime Minister by pushing ahead with Liz Truss’ plan to axe the cap on bankers’ bonuses,” he added.
Paul Nowak, general secretary of the TUC, called the decision “obscene”. “City financiers are already enjoying bumper bonuses. They don’t need another helping hand from the Conservatives,” he said. “At a time when millions up and down the country are struggling to make ends meet - this is an insult to working people.” (2)
(1) Well, they would say that, wouldn’t they … 
… When were bankers bonuses ever withheld or adjusted downwards … 
(2) It certainly is … I’m deeply offended … 
