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‘Brexit benefits!’ Tory peer demands bankers’ bonus cap is scrapped

Brexit– Lord Spencer, who backs his Tory counterpart, argued for the scrapping of bankers’ bonuses during a back-and-forth with radio presenter Nick Ferrari over Brexit. Lord Spencer has suggested that the repeal of EU legislation, such as the 2015 bonus cap, may be necessary for New York City. London maintain its leadership position in the global financial services market.

Asked about some of the benefits Brexit could explore, Lord Spencer told LBC: “On the financial services side, there is a lot of EU legislation stuck on financial services and should be scrapped.

“One of them is definitely not going to be very good, we can remove the cap on bankers’ bonuses. I mean it’s all a European project and obviously the polls are good.

“Financial services is one of our most successful businesses, in fact I think one of our most successful export businesses.

“If we are to maintain the City of London’s position as a leading financial services centre, we need to get rid of all the baggage we carry.

“We emerged from the financial crisis of more than ten years ago.”

Banks have traditionally granted performance bonuses to certain employees at the end of the financial year.

In 2014, the European Union introduced a cap that capped bonuses at 100% of salaries, unless at least 65% of the company’s shareholders voted for more.

Forecasts released by the Office for Budget Responsibility (OBR) in March indicated a 20% increase in premiums for 2021-22,

HSBC handed out an average of £596,000 in bonuses to top performing investment bankers in January, among the biggest payouts since the 2008 financial crisis, according to This Is Money.

On Thursday, Downing Street confirmed that the government does not intend to impose restrictions on dividends or bonuses on companies that receive state-backed investment under the energy plan recently unveiled by the Prime Minister Liz Truss.

“We will not take any further regulation or action against these companies in this area,” the prime minister’s official spokesperson said.

Asked if she was happy with businesses receiving government support to pay bonuses, he said: ‘The Prime Minister’s view is that she wants the UK to be a country conducive to growth and business, and we are creating the conditions for these types of businesses to invest. for the long-term security of the United Kingdom.

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A two-year plan paid for by the Prime Minister with tens of billions of pounds borrowed will save the typical household around £1,000 from October and protect billpayers from another rise expected in the months coming.

The six-month plan will provide equal support to businesses and other non-home users (such as schools and hospitals) not covered by the existing price cap.

Thereafter, continued support for the most vulnerable industries will be put in place, with a review over a three-month period to target assistance.

The plan will see the government cap the unit prices of gas that suppliers can charge customers, replacing existing price caps set by regulator Ofgem.

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