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Kate Plummer
Sep 16, 2022
Starmer says government wants workers to take pay cut while boosting bankers ...
Indy
The new chancellor reportedly wants to scrap banker's bonus caps and people aren't happy.
According to the Financial Times, the move to scrap rules imposed after the 2008 financial crash that capped bonuses at twice an employee’s salary is being considered to boost growth in the City.
Richard Gnodde, head of Goldman Sachs’ international operations, told the Financial Times eliminating the bonus cap would make “London a more attractive place for sure”.
But it comes as workers face real-terms pay cuts as wages fail to keep pace with inflation set to top 10 per cent.
Responding to reports about the news, people were outraged.
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Andrew Sentance, a member of the Bank of England’s monetary policy committee during and after the financial crisis, said it was a “very bad” time to consider increasing banker’s bonuses.
Speaking on BBC Radio 4’s Today programme on Thursday, Sentance said: “It 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.”
He added: “To appear to allow bankers to have bigger bonuses at the same time, doesn’t look very well timed. There may be some longer-term arguments for pursuing this policy, but I think the timing would be very bad if they did it now.”
\u201cOh.\u201d— James Oh Brien (@James Oh Brien) 1663229410
\u201cRemove cap on bankers\u2019 bonuses, no new windfall tax on energy companies and tax cuts to come that will favour the most well off. Well, you can\u2019t fault the @trussliz government for boldness. But fairness?\u201d— Jon Sopel (@Jon Sopel) 1663189269
\u201cThe Bank of England is urging workers to accept wage restraint. Meanwhile, Kwasi Kwarteng is set to lift the cap on bankers' bonuses.\u201d— David__Osland (@David__Osland) 1663224249
\u201cThey want to boost bankers bonuses? While also scrapping the corporation tax rise; not doing a larger windfall tax; allowing fracking; and having a go at employment rights?\n\nAre they trying to help out Starmer's new speechwriter?\u201d— Sam Freedman (@Sam Freedman) 1663186620
\u201cKwasi Kwarteng is seeking to scrap bankers\u2019 bonus cap to boost City \n\nIn other news Liz Truss calls key workers who refuse to accept a crappy real terms pay cut in a cost of living crisis \u201cmilitant\u201d\n\n#EnoughIsEnough \nhttps://t.co/SRLcnw1hAM\u201d— Peter Stefanovic (@Peter Stefanovic) 1663219820
\u201cOh thank god! We\u2019d all been so worried about the bankers \ud83d\ude33\n\nJeez - really starting as they mean to go on. Fracking, no windfall tax, sorting out the wealthy\u2026..Buckle up - the ERG are now officially in charge.\u201d— Jemma Forte (@Jemma Forte) 1663191681
\u201c0.3% of the British electorate voted for Truss as PM. Worth remembering when evaluating her Cabinet\u2019s policies eg the trailed scrapping of anti-obesity measures & lifting the cap on bankers\u2019 bonuses (which is already 2x their salaries) whilst asking others for wage restraint\u201d— Professor Susan Michie (@Professor Susan Michie) 1663222367
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