UK opposes bid to cap bankers’ bonuses

GEORGE Osborne has filed a formal complaint against Brussels over plans to cap bankers’ bonuses amid fears the move will backfire and drive up salaries.

George Osborne. Picture: Ian Rutherford

The legal action was lodged on Friday, after it had been approved by the Chancellor.

The Treasury said the European Union had gone beyond its remit in seeking to regulate bonuses, which had been decided without proper consultation and with no impact assessment.

An HM Treasury spokesman said: “Britain has been at the forefront of global reforms to make banking more responsible, including big reductions in upfront cash bonuses and linking rewards to long-term success.

“These latest EU rules on bonuses will undermine all of this by pushing bankers’ fixed pay up rather than down, which will make banks themselves riskier rather than safer.”