The cap on bankers' bonuses, introduced by the European Union a decade ago, will be scrapped next week in an effort to make the UK more appealing to high-earning professionals. Financial regulators have confirmed this move, stating that it will attract individuals who generate more income for the country through increased tax payments. The lifting of the cap is seen as a way to enhance the competitiveness of the City of London, particularly in the face of stiff competition from overseas.
Controversial Decision Sparks Criticism
Despite the potential benefits, the decision to scrap the cap has been met with criticism. The Trades Union Congress (TUC) labeled the move as "obscene" in the midst of a cost-of-living crisis. TUC General Secretary Paul Nowak stated, "At a time when millions of people are struggling financially, this decision is an insult to working individuals."
A Measure Implemented in Response to the Financial Crisis
The cap on bankers' bonuses was initially introduced as a response to the 2008 financial crisis. The rule limited bonuses to 100% of pay, or 200% with approval from shareholders, in order to curb excessive risk-taking. Former Chancellor Kwasi Kwarteng first proposed the idea of scrapping the cap last year, and George Osborne attempted to overturn it at the European Court of Justice.
Did you miss our previous article…
https://hellofaread.com/money/stock-market-chaos-as-cab-payments-suffers-catastrophic-crash/
