Banking

British government bashed after cap on banker bonuses scrapped

UK financial regulator lifted limit on bonuses paid to bank employees in a bid to create attractive financial hub post-Brexit

Bank bonus cap: Current rules limit bonuses to 100 per cent of the salary for employees of banks or building societies, or double with shareholder approval. Picture: Getty

A cap on bonuses for bankers is set to be scrapped in a bid to make the UK a more attractive financial hub post-Brexit, financial regulators have ruled.

It prompted critics including the Labour Party to attack the “out of touch” move as households grapple with higher bills and living costs.

The decision will remove the limit on bankers’ annual payouts from the end of October, the Financial Conduct Authority (FCA) and Bank of England’s ...