London Daily

Focus on the big picture.
Monday, Oct 06, 2025

Give details of 'banker bonus' talks, Labour tells government

Give details of 'banker bonus' talks, Labour tells government

Labour has urged the government to reveal whether the prime minister was "lobbied" by bankers for the cap on their bonuses to be lifted.

The Financial Times reports that on 7 June, Boris Johnson and Chancellor Rishi Sunak were asked to raise the limit, currently 200% of fixed pay.

Labour's Angela Rayner accused ministers of "hypocrisy" at a time when inflation is putting pressure on wages.

The government has insisted it is not looking to change bonus rules.

In a recent statement the Department for Business, Energy and Industrial Strategy said the focus was instead on possibly changing the form in which bonuses were paid out - with potentially more of the awards coming in company shares rather than cash.

This meant recipients would be more "fully invested in the success of the company they run", it added.

The EU-wide cap on bankers' bonuses is normally set at 100% of salary but it can be extended to as much as 200% of fixed pay if there is explicit shareholder permission.
It was brought in after the 2008 financial crisis. Supporters say it ensures fairness, but opponents argue that removing it for UK-based bankers following Brexit would give the City of London a competitive advantage over its rivals.

The Financial Times has reported that, at a virtual meeting featuring Mr Johnson, Mr Sunak, Bank of England governor Andrew Bailey and international bankers, the prospect of the post-Brexit UK lifting of "unnecessary" restrictions on bonuses was discussed.

And the i newspaper has reported that Cabinet Office minister Steve Barclay, who is also the prime minister's chief-of-staff, wrote to the chancellor calling for "deregulatory measures" to help businesses, including cutting restrictions on director and non-executive director remuneration.


What was promised?


In a letter to Mr Barclay, Labour's deputy leader Ms Rayner says the claims over the meeting on 7 June are of "huge concern" and show "hypocrisy" when inflation is running at 9.1%, the highest level in 40 years.

"It appears this government's 'new approach' is to prioritise increasing bankers' bonuses rather than helping working people," she adds.

Ms Rayner asks for the minutes of the meeting to be released, what "was promised" and whether there were further discussions after 7 June.

The subject also came up at Prime Minister's Questions, when Labour leader Sir Keir Starmer said Mr Johnson had "rolled over" on bankers' bonuses.

The prime minister replied: "What we're actually doing is, thanks to the decisions we've taken... putting money into the pockets of people up and down the country - £1,200 more for the eight million most vulnerable households."

He said the government was able to do this after taking the "tough decisions" linked to the pandemic.


Keir Starmer: Government increasing bankers' bonuses


Newsletter

Related Articles

0:00
0:00
Close
Three Scientists Awarded Nobel Prize in Medicine for Discovery of Immune Self-Tolerance Mechanism
OpenAI and AMD Forge Landmark AI-Chip Alliance with Equity Option
Munich Airport Reopens After Second Drone Shutdown
France Names New Government Amid Political Crisis
Trump Stands Firm in Shutdown Showdown and Declares War on Drug Cartels — Turning Crisis into Opportunity
Surge of U.S. Billionaires Transforms London’s Peninsula Apartments into Ultra-Luxury Stronghold
Pro Europe and Anti-War Babiš Poised to Return to Power After Czech Parliamentary Vote
Jeff Bezos Calls AI Surge a ‘Good’ Bubble, Urges Focus on Lasting Innovation
Japan’s Ruling Party Chooses Sanae Takaichi, Clearing Path to First Female Prime Minister
Sean ‘Diddy’ Combs Sentenced to Fifty Months in Prison Following Prostitution Conviction
Taylor Swift’s ‘Showgirl’ Launch Extends Billion-Dollar Empire
Trump Administration Launches “TrumpRx” Plan to Enable Direct Drug Sales at Deep Discounts
Trump Announces Intention to Impose 100 Percent Tariff on Foreign-Made Films
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Singapore and Hong Kong Vie to Dominate Asia’s Rising Gold Trade
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Manhattan Sees Surge in Office-to-Housing Conversions, Highest Since 2008
Switzerland and U.S. Issue Joint Assurance Against Currency Manipulation
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Thomas Jacob Sanford Named as Suspect in Deadly Michigan Church Shooting and Arson
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
New York Man Arrested After On-Air Confession to 2017 Parents’ Murders
U.S. Defense Chief Orders Sudden Summit of Hundreds of Generals and Admirals
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
Trump Claims FBI Planted 274 Agents at Capitol Riot, Citing Unverified Reports
India: Internet Suspended in Bareilly Amid Communal Clashes Between Muslims and Hindus
Supreme Court Extends Freeze on Nearly $5 Billion in U.S. Foreign Aid at Trump’s Request
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
China Deploys 2,000 Workers to Spain to Build Major EV Battery Factory, Raising European Dependence
Speed Takes Over: How Drive-Through Coffee Chains Are Rewriting U.S. Coffee Culture
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Ringo Starr Champions Enduring Beatles Legacy While Debuting Las Vegas Art Show
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
FBI Removes Agents Who Kneeled at 2020 Protest, Citing Breach of Professional Conduct
Trump Alleges ‘Triple Sabotage’ at United Nations After Escalator and Teleprompter Failures
Shock in France: 5 Years in Prison for Former President Nicolas Sarkozy
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
BNP Paribas Abandons Ban on 'Controversial Weapons' Financing Amid Europe’s Defence Push
Typhoon Ragasa Leaves Trail of Destruction Across East Asia Before Making Landfall in China
The Personality Rights Challenge in India’s AI Era
Big Banks Rebuild in Hong Kong as Deal Volume Surges
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Arnault Denounces Proposed Wealth Tax as Threat to French Economy
Study Finds No Safe Level of Alcohol for Dementia Risk
Denmark Investigates Drone Incursion, Does Not Rule Out Russian Involvement
Lilly CEO Warns UK Is ‘Worst Country in Europe’ for Drug Prices, Pulls Back Investment
Nigel Farage Emerges as Central Force in British Politics with Reform UK Surge
×