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.”


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