Bankers’ Bonus Cap Axed from October 31 in Brexit Shake-Up
Big news for London’s financial sector: the cap on bankers’ bonuses is officially being scrapped from October 31. This move, first revealed by former Chancellor Kwasi Kwarteng last year, is designed to make the City of London a more attractive hotspot for business post-Brexit. Surprisingly, it’s one of the few policies from the mini-budget that survived the chop after Kwarteng was replaced.
The bonus cap, set up in 2014 while the UK was still in the EU, was meant to prevent reckless risk-taking after the 2008 financial crash. It limited how much bankers could receive in variable pay, but finance bosses have long moaned it pushed up fixed salaries and costs. Critics warn removing the cap could spark bigger financial risks and fuel inequality, hitting struggling households already squeezed by the cost of living crisis.
UK Job Market Slows as Interest Rate Hold Looks Likely
The latest figures show the UK job market losing steam, with unemployment steady at 4.2% from June to August. Businesses are scaling back hiring thanks to rising prices and higher interest rates, slowing the UK’s economic growth.
This downturn strengthens forecasts that the Bank of England will keep interest rates unchanged at 5.25% in November. After 14 straight rate hikes ending in September, the Bank faces a tough choice: pump the brakes on inflation or risk stifling growth further.
Real Living Wage Hike Gives Low Earners a £1.10 Pay Rise
From Tuesday, hundreds of thousands of UK workers will see their hourly pay jump 10% under the voluntary Real Living Wage scheme. This boost takes pay from £10.90 to £12 an hour outside London – a “lifeline” says the Living Wage Foundation.
The scheme, run by the Living Wage Foundation charity, sets rates above the government minimum to cover everyday living costs. At £12, it’s £1.58 higher than the National Living Wage of £10.42 for over-23s. But some business groups warn that not all employers can afford such rises.
