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| Silence over plan to remove bankers' bonus cap | |
| (about 1 hour later) | |
| A plan to remove a cap on bankers' bonuses appears to be one of the few mini-budget policies to remain after most measures were unwound by the new chancellor. | |
| Jeremy Hunt made no mention of a U-turn on banker's bonuses as he reversed many of his predecessor's policies. | Jeremy Hunt made no mention of a U-turn on banker's bonuses as he reversed many of his predecessor's policies. |
| Kwasi Kwarteng had announced lifting the cap last month as part of a shake-up of City rules to boost the economy. | Kwasi Kwarteng had announced lifting the cap last month as part of a shake-up of City rules to boost the economy. |
| The Treasury has not responded to requests for comment from the BBC. | The Treasury has not responded to requests for comment from the BBC. |
| Critics argued the move benefited wealthy people at a time households were struggling with living costs. | |
| But Mr Hunt did not mention any reversal on the removal of the bonus cap for bankers, which would be a post-Brexit shake up of City rules. | |
| What Jeremy Hunt's statement means for you | What Jeremy Hunt's statement means for you |
| Two thirds of tax cuts from mini-budget reversed | Two thirds of tax cuts from mini-budget reversed |
| City bosses have long complained about the EU-wide bonus rules which cap bonuses at twice an employee's salary, arguing they lead to higher base pay that pushes up banks' fixed costs. | City bosses have long complained about the EU-wide bonus rules which cap bonuses at twice an employee's salary, arguing they lead to higher base pay that pushes up banks' fixed costs. |
| Those costs cannot be adjusted in line with the firm's financial performance, they add, making the UK less attractive than the US or Asia. | Those costs cannot be adjusted in line with the firm's financial performance, they add, making the UK less attractive than the US or Asia. |
| However, critics have argued that uncapped bonuses lead to the kind of excessive risk taking that spawned the financial crisis of 2008. | However, critics have argued that uncapped bonuses lead to the kind of excessive risk taking that spawned the financial crisis of 2008. |
| On Friday, the Trades Union Congress (TUC) said City bonuses had increased at more than twice the speed of wages since the 2008 financial crash. | On Friday, the Trades Union Congress (TUC) said City bonuses had increased at more than twice the speed of wages since the 2008 financial crash. |
| The union body said its analysis found bonuses in the finance and insurance sector were now worth, on average, around £20,000 a year - their highest level on record. | The union body said its analysis found bonuses in the finance and insurance sector were now worth, on average, around £20,000 a year - their highest level on record. |
| "Everyone who works for a living deserves to earn a decent living, but ministers are holding down the pay of millions of key workers, while lining the pockets of City financiers," said Frances O'Grady, TUC's general secretary. | "Everyone who works for a living deserves to earn a decent living, but ministers are holding down the pay of millions of key workers, while lining the pockets of City financiers," said Frances O'Grady, TUC's general secretary. |
| The TUC called on the government to boost the minimum wage to £15 an hour. The minimum wage, which is known officially as the National Living Wage is currently £9.50 an hour for over-23s. | The TUC called on the government to boost the minimum wage to £15 an hour. The minimum wage, which is known officially as the National Living Wage is currently £9.50 an hour for over-23s. |
| Andrew Sentance, a former member of the Bank of England's rate-setting Monetary Policy Committee, has previously told the BBC that the move sends a "rather confused signal when people are being squeezed in terms of the cost of living, and the government is trying to encourage pay restraint in the public sector". | Andrew Sentance, a former member of the Bank of England's rate-setting Monetary Policy Committee, has previously told the BBC that the move sends a "rather confused signal when people are being squeezed in terms of the cost of living, and the government is trying to encourage pay restraint in the public sector". |
| The Labour Party has said move to lift the cap is "bizarre" and will "do nothing to support growth". | The Labour Party has said move to lift the cap is "bizarre" and will "do nothing to support growth". |