Bankers’ bonus cap scrapped by Kwasi Kwarteng in mini-budget

Chancellor says move will attract top talent to the City and boost tax revenue

The cap limiting bankers’ bonuses to 200 per cent of annual salary has been scrapped by chancellor Kwasi Kwarteng in his mini-budget.

The EU-wide cap was imposed in 2014 to discourage the type of profit-chasing that some critics said triggered the financial crash of 2008.

It limited annual bonuses to 100 per cent of salary - or 200 per cent if shareholders approved - in order to give less of an incentive for risk-taking.