Tories SCRAP cap on multimillion pound bonuses for wealthy bankers as millions struggle

Announcing his mini budget in the House of Commons, Chancellor Kwasi Kwarteng opened the door for unlimited payments to be dished out again – as millions struggle to make ends meet

Kwasi Kwarteng today handed a massive boost to City bankers (

Image: PA)

Tories today announced a huge boost to millionaire bankers by SCRAPPING a cap on massive bonuses handed out by City bosses.

Announcing his mini-budget, Chancellor Kwasi Kwarteng opened the door for unlimited payments to be dished out yet again.

Under rules brought in after the 2008 financial crash, bonuses are limited at double an employee’s salary.

Mr Kwarteng today claimed that instead of affecting the amount of cash bankers were taking home, it was simply driving up their basic salaries.

The unpopular move is likely to cause an outcry as millions of families struggle to make ends meet as the cost of living soars.

What do you think about the cap on bonuses being abolished? Let us know in the comments below

TUC General Secretary Frances O’Grady voiced her outrage at the move (

Image:

PA)

When the move was mooted last week, TUC General Secretary Frances O’Grady said : “Bonuses in the City are already at a record high.

“While City executives rake it in, millions are struggling to keep their heads above water.

“Working people are being walloped by soaring prices after the longest and harshest wage squeeze in modern history.

“The chancellor’s number one priority should be getting wages rising for everyone – not boosting bumper bonuses for those at the top.

“To get pay rising across the economy, the chancellor must deliver a plan for a £15 minimum wage, fund decent pay rises for all public sector workers and introduce fair pay agreements for whole industries.

“That’s how you boost pay packets in every corner of the country.”

Analysis of government data by the TUC found that bonuses in the financial and insurance sector grew by 27.9% in the past 12 months – six times faster than average wages, which went up by 4.2%.

Mr Kwarteng told the House of Commons today: “We need global banks to create jobs here, invest here and pay taxes here in London, not Paris, not Frankfurt and not New York.”

He added that the bonus cap inflated salaries, stating: “All the bonus cap did was push up the salaries of bankers, it never capped total remuneration.”

Read More Read More Read More Read More Read More