Banker bonus cap hint

CITY minister John Glen has suggested the Government could axe a cap on banker bonuses to maintain London’s competitiveness.

Glen said he would keep the cap, which limits bankers’ bonuses to 100pc of their salary in most cases, ‘under review’.

It was introduced in the aftermath of the financial crisis amid public outrage at the size of some payouts. In an interview with the Financial Times, Glen said: ‘We need to look at how effective it is and what market effect it actually has.’

He added: ‘It’s not something we are imminently seeking to make an announcement on.’ He hinted the Budget would cut the 8pc corporation tax surcharge banks pay.