Those warning against the move said the cap was brought in to deter bankers from making the kind of risky financial decisions that led to the 2008 crash
Financial services giant PwC said scrapping the cap would offer “greater flexibility for UK banks” offering the “the potential to reduce fixed costs […] which arguably could drive competitive benefit to the UK”.
“The most controversial policies – cutting the additional rate of tax, corporation tax and the cap on bankers’ bonuses – are unlikely to have substantial economic effects, but they are politically potent: reinventing the Tory brand, winding up the Left and showing this Government unashamedly means business,” he said.
Becca Lyon, head of child poverty at Save the Children, said: “The Chancellor has prioritised bankers’ bonuses over helping vulnerable children through the cost of living crisis, whose hard-working parents face impossible choices.” The Chancellor said: “We need global banks to create jobs here, invest in London, and pay taxes in London, not Paris, not Frankfurt, not New York. All the bonus cap did was to push up the basic salaries of bankers, or drive activity outside Europe.