The bankers’ bonus cap will be withdrawn which will help boost the competitiveness of London as a financial centre and boost the economy.
The cap, which was introduced by the European Union following the financial crisis, limited remuneration of select bank staff to 100 per cent of their fixed pay or 200 per cent with shareholder approval.
It came into force in 2014 and covered bonuses in the form of both cash and shares.
According to the government’s “Growth Plan” documents, the pay in bonuses “aligns the incentives of individuals with those of the bank”, which would support growth in the UK economy.
In his speech announcing his mini Budget this morning, Chancellor Kwasi Kwarteng said: “A strong UK economy has always depended on a strong financial services sector. We need global banks to create jobs here, invest here and pay taxes here in London.
“Not in Paris, not in Frankfurt and not in New York. All the bonus cap did was to push up the basic salaries of bankers or drive activity outside Europe. It never capped total remuneration so, let’s not sit here and pretend otherwise. So as a consequence of this…we are going to get rid of it.”
Earlier this week according to reports, when asked whether she was happy to see bankers get bigger bonuses prime minister Liz Truss said she was prepared to take “difficult decisions” to make Britain more competitive, attractive and bring in more investment.
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
