Rishi Sunak implements Liz Truss' plan to scrap bankers' bonus cap

Sign up to receive the e -mail View from Westminster for expert analysis straight to your inboxReceive our free View from Westminster emailPlease enter a valid email addressPlease enter a valid email addressI would like to receive offers, events and updates by email updates from The Independent. Read our privacy notice{{ #verifyErrors }}{{ message }}{{ /verifyErrors }}{{ ^verifyErrors }}Something went wrong. Please try again later.{{ /verifyErrors }}

Rishi Sunak is pushing ahead with Liz Truss's plan to scrap the cap on bankers' bonuses, despite warnings that increasing massive payouts for the rich is "obscene".< /p>

The removal of the multi-million pound bonus cap for high earners is one of the only policies to survive the disastrous period of 'trusonomies' last autumn.

p>M. Sunak endorsed his predecessor's policy of getting rid of post-Brexit rules on bonus caps – inherited from the EU when the UK was still a member.

L The approval comes about a year after former chancellor Kwasi Kwarteng first revealed plans to change bonus rules amid the mini-fiasco, which sparked market panic.

< p>Even Boris Johnson reportedly decided against taking the plunge because he feared a huge political backlash during the cost of living crisis.

On Tuesday, the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA) of the Bank of England have confirmed that the current bonus cap will be lifted on October 31.

The move is part of an attempt to help London's financial center to defend themselves. competitors after Brexit – was immediately condemned by unions as “an insult to workers”.

Darren Jones, Labour's shadow Treasury secretary, mocked the Prime Minister for following his predecessor. “When Truss says jump, Sunak says how high,” he said.

Mr. Jones added: “At a time when families are struggling with the cost of living and mortgages are rising, this decision tells you all you need to know about the priorities of this out-of-touch Conservative government.”

Lifting the cap will allow bankers to earn double their fixed salary in the form of bonuses

< p>TUC general secretary Paul Nowak said it was an “obscene decision”, adding: “City financiers are already profiting from...