The Daily Telegraph
SIR – Although removing the cap on bankers’ bonuses is a certain vote loser, Kwasi Kwarteng, the Chancellor, would be right to do so (“Bank backs Kwarteng on plan to ditch bonus cap”, report, September 16).
The policy always had a limited evidence base, leading to suspicions it was just another EU law to clip the City’s wings. Moreover, as the cap doesn’t limit total remuneration, fixed salaries have soared, making banks less agile in times of limited liquidity.
The principle of growing the City by attracting talent is sound, and indirectly benefits us all through increased consumer spending and taxation. Mr Kwarteng should do more, however, to ensure that the City’s growth is tied to social utility. He must find more of these post-brexit dividends if he is to do this, and make good on his promise of a Big Bang 2.0. Ben Cope
SIR – I worked hard all my working life and never received a bonus. I was only too pleased to work for 25 years before redundancy.
Bankers were responsible for the collapse of the financial system in 2008. We have seen the closure of bank branches and general poor service. Increases in interest rates are not passed on to savers. Now bankers who are already well paid will be allowed to receive uncapped bonuses. During a cost-of-living crisis, this is obscene.
As I was afraid would happen, the Government appears to be rewarding the fat cats who already have enough. That is why I voted for Rishi Sunak to be the leader of the Conservative Party. David Goodchild
SIR – Kwasi Kwarteng is to scrap the EU cap on bankers’ bonuses.
Another early policy of the new administration is to shore up the multimillion-pound profits of the energy companies (“Energy bill freeze hands suppliers £1.6 billion”, report, September 15). I’m sure many who voted for Brexit are feeling, like me, that they were duped. I checked the definition of plutocracy and conclude that’s what we have now.
Having previously supported the Conservatives, I will be voting Labour at the next election.