The City could still be bound by the EU cap on bonuses after Brexit, it has emerged, as the chancellor prepares to give a speech on the UK’s future financial relationship with Brussels. The development is likely to anger senior bankers who want to abolish the bonus restrictions that were opposed by George Osborne, chancellor when the cap was introduced in 2013. Mark Carney, the governor of the bank of England, suggested in November that it was an area where the UK could deviate from the EU after Brexit. The cap limits payouts to 100 per cent of salary or 200 per cent with explicit approval from shareholders. A Whitehall source refused to rule out participation in the scheme after Brexit, and said that
UK financial sector workers could still be bound by the European Union cap on bonuses following Brexit, after a Whitehall source refused to commit to dropping the scheme. The Department for Business, Energy and Industrial Strategy (BDE), which is responsible for setting up the scheme, said it was “working with industry partners in order to ensure that all employees are covered under EU However, insiders have said retaining the banking bonus cap, imposed by Brussels, is likely to anger senior figures in the industry.