The British government wants to remove an upper limit for bonus payments for bankers and is met with sharp criticism. The GMB union urged Bank of England boss Andrew Bailey to oppose the move. Prime Minister Liz Truss’ move was an insult to workers “who are being asked by the likes of Mister Bailey to tighten their belts,” said GMB general secretary Gary Smith. Bailey had advised consumers not to, citing rising food and energy costs. Earlier, Truss announced she was ready to make “tough decisions” to boost the economy.
The abolition of the upper limit for bonus payments is intended to make the London financial center more attractive after Brexit and to attract new companies. CEOs have long complained about the rule, dating back to Britain’s EU membership days, which caps extra pay at twice annual pay. In surveys, a majority of the population recently spoke out in favor of maintaining the upper limit. To boost economic growth, Truss wants a newspaper report Times also significantly reduce the so-called stamp duty, which is similar to real estate transfer tax. This is intended to encourage first-time buyers in particular to purchase a property. Experts warned the move could fuel rising mortgage rates further. Truss had previously announced that it would withdraw the increase in social security contributions and freeze corporate taxes. These projects alone are likely to cost around £30 billion (34.3 billion euros).