Rachel Reeves says she will not reinstate bankers’ bonus cap months after criticism
Labour wouldn’t reinstate the cap on bankers’ bonuses – regardless of slamming the Tories for permitting millionaire City employees to assert bumper payouts simply three months in the past.
Shadow Chancellor Rachel Reeves, who has been on a attraction offensive with enterprise, mentioned she had no intention of reinstating limits on payouts for fatcat bankers. “The cap on bankers’ bonuses was bought in in the aftermath of the global financial crisis and that was the right thing to do to rebuild the public finances,” she informed the BBC.
“But that has gone now and we don’t have any intention of bringing that back. And as Chancellor of the Exchequer, I would want to be a champion of a successful and thriving financial services industry in the UK.”
It comes at odds along with her feedback in October, the place she slated the Tories for a similar factor. Responding to claims from the unions on the time that it promoted a “greed is good” mantra, Ms Reeves tweeted: “Today – in the midst of their cost of living crisis – the Conservatives are scrapping the cap on bankers’ bonuses. It tells you everything you need to know about this Government.”
Keir Starmer additionally beforehand informed the Mirror: “Removing the cap on bankers’ bonuses when people are really struggling to pay their bills shows the Tories are absolutely tone deaf to what so many people are going through.”
Rules introduced in after the 2008 monetary crash restricted annual bonuses at double an worker’s wage. But Liz Truss‘s Government unveiled plans to axe the cap on multi-million pound payouts in her disastrous mini Budget in 2022. The Tories had been extensively criticised on the time for permitting limitless funds to the rich whereas atypical Brits grappled with a value of residing disaster.
But Rishi Sunak pressed forward with the plan after Liz Truss’s Government collapsed following a markets backlash to her plans for a bonanza of unfunded tax cuts.
Ms Reeves’ remarks triggered a backlash from the left-wing of the celebration. A spokesperson for the Momentum activists community mentioned: “This is a terrible decision totally out of touch with Labour’s values and public opinion.
“For over forty years our financial mannequin has sucked wealth from the nation & enriched a couple of within the City. It even crashed the economic system in 2008. Yet as a substitute of studying the teachings from New Labour’s failures, Starmer & Reeves appear decided to repeat them.”
