Rachel Reeves: Labour has ‘no intention’ of restoring bankers’ bonus cap

Labour has “no intention” of restoring the cap on bankers’ bonuses, Rachel Reeves has said.

The shadow Chancellor said her party would not look to bring back the measure brought in in the wake of the 2008 financial crash and scrapped last year by the Conservatives.

She told the BBC: “The cap on bankers’ bonuses was bought in in the aftermath of the global financial crisis and that was the right thing to do to rebuild the public finances.

“But that has gone now and we don’t have any intention of bringing that back.” 

And she added: “And as chancellor of the exchequer, I would want to be a champion of a successful and thriving financial services industry in the UK.”

Rules were brought in by the European Union (EU) in 2014 to limit annual bonus payouts to 200 per cent – double a bankers regular salary – in a bid to stop unnecessary risk-taking.

Reeves’ comments came as Labour revealed significant plans to boost City growth and overhaul financial regulations, in a major pre-election charm offensive to the Square Mile.

Proposals will see the party, if elected, look to “modernise the regulatory burden” and push watchdogs to identify and cut “redundant” rules that have hampered the growth of the sector.

But the plans were criticised by former City minister Andrew Griffith as “dog food lasagne”.

Labour has embarked on a mission to win over businesses in the past year, and plans to host its biggest business conference this Thursday, with hundreds of FTSE100 CEOs.

Shadow business secretary Jonathan Reynolds has also vowed Labour would host annual investment summit if elected.

While former Conservative MP hopeful and Iceland boss Richard Walker has endorsed the party, backing Keir Starmer for Prime Minister.