LONDON (Reuters) – British Finance Minister Kwasi Kwarteng is considering removing caps on bankers’ bonuses to boost London’s financial incentives to New York and Hong Kong after Brexit, a source familiar with Kwarteng’s thinking said. Center for Competitiveness.
Prime Minister Liz Truss has pledged to “really untangle” the City of London after the UK leaves the EU, while Kwarteng is considering the possibility of dropping the cap on bankers’ bonuses originally adopted as EU rules.
Sources, who spoke on condition of anonymity, confirmed a report in the Financial Times that the change was being considered, but said no decision had been made.
The EU-wide cap on banker bonuses was introduced after the financial crisis and remains in place in the UK despite its exit from the EU.
Former Prime Minister Boris Johnson’s government considered the idea of removing the cap in June but was ultimately ruled out.
REDUCED CRITICISM Kwarteng will act against the backdrop of the UK’s recently announced two-year cap on consumer energy bills about helping wealthy bankers amid the cost of living crisis, the Financial Times said.
Truss has said she wants to scale back financial rules inherited from the European Union, saying she “takes control of the city and its contribution to the country as a whole”.
Kwarteng aims to make a fiscal statement by the end of the month (probably next week) and could use it to illustrate how he will deliver on the tax cuts Truss promised during his Conservative leadership campaign .