UK’s Kwarteng seeks to scrap curbs on banker bonuses – FT

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British finance minister Kwasi Kwarteng is seeking to scrap caps on bankers’ bonuses in a bid to boost London’s competitiveness against financial capitals like New York and Hong Kong, the Financial Times reported on Wednesday.

Kwarteng argues the move would make London a more attractive destination for top global talent, the newspaper reported, citing his colleagues.

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An EU-wide cap on bankers’ bonuses was introduced following the financial crash and it remains in place in Britain despite the country leaving the bloc.

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The idea to lift caps was considered by former Prime Minister Boris Johnson’s administration in June, but was eventually ruled out.

To reduce criticism about helping rich bankers, Kwarteng would set the move in the context of Britain’s recently announced move to cap consumer energy bills for two years, the FT report added.

Kwarteng aims to make a fiscal statement before the end of this month, and is likely to use it to say how he will deliver the tax cuts promised by Prime Minister Liz Truss during her campaign for leadership of the Conservative Party. (Reporting by Rhea Binoy in Bengaluru; Editing by Lisa Shumaker and Richard Pullin)