Cap on bankers’ bonuses will be scrapped next week in bid to make UK more attractive to big earners

THE cap on bankers’ bonuses will be scrapped next week — a decade after it was introduced by the European Union.

The move, confirmed by financial regulators, is meant to make the UK more attractive to talented big earners.

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They generate more income for the UK by paying more tax.

The lifting of the cap has been welcomed as increasing the City’s post-Brexit competitiveness as the Square Mile faces intense competition from abroad.

But the Trades Union Congress branded the decision “obscene” during a cost-of-living crisis.

General secretary Paul Nowak said: “At a time when millions up and down the country are struggling to make ends meet, this is an insult to working people.”

The rule, which caps bonuses at 100 per cent of pay or 200 per cent with shareholder approval, was brought in to curb risk-taking after the 2008 financial crisis.

Plans to scrap it were first floated by former Chancellor Kwasi Kwarteng last year.

Another, George Osborne, tried to overturn it at the European Court of Justice.

This post first appeared on thesun.co.uk