London Daily

Focus on the big picture.
Thursday, Jul 24, 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
Politic is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
×