2022 mini-budget discussion

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Jono8 said:
Odd isnt it....

it is almost like the whole thing is a clown show, run by greedy morons.
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You guys do understand that the UK would like to attract high skilled workers without having an open door policy? These aren't contradictory positions.
 
delta0 said:
The issue is we can’t take money from something that’s not here. If we need to attract people to the UK and long term investment then we have to make it attractive and competitive with other countries. The alternative is to keep squeezing what is there until there is nothing left.


You will know when you’ve worked in that environment what it’s like.
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Where else would they go? The bonus cap is an EU wide policy. Unless you are talking Singapore? We surely have enough bankers already anyway, we dont really need to remove the bonus cap to attract any more it is simply a bung to bankers.

www.theguardian.com

What is the banker bonus cap and could scrapping it boost growth?

Chancellor may lift EU-era restriction in hope of making UK more attractive to financial sector
www.theguardian.com www.theguardian.com
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The UK strongly opposed the legislation, with the then chancellor, George Osborne, even attempting to overturn the bonus cap at the European court of justice.

Andrew Tyrie, the former chair of the Treasury committee, who also chaired the parliamentary commission on banking standards, said a cap would not necessarily promote higher standards, which instead required “fundamental reforms” that could include longer bonus deferrals and clawbacks.

The Bank of England was concerned the cap would lead to a rise in fixed salary costs and squeeze bank finances.

Others argued that a clampdown would damage City competitiveness and send bankers fleeing to rival hubs in New York, Zurich or Singapore, and that their salaries would be inflated to compensate for the cap on bonuses.
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The change is apparently part of the government’s pro-growth agenda and is meant to make the UK a more competitive and attractive place to do business. It comes as the government floats plans to reunite the two City regulators after their post-crisis split and restore “competitiveness” as a secondary objective for UK regulators, despite economists warning it is an inappropriate throw-back to pre-crisis conditions.

While some argue the EU cap was a clunky and ineffective way to curb risk and pay, removing the cap will make little difference to where banks base their staff.

Put bluntly: if there is business to be had, banks will find a way to compensate workers, regardless of banking caps. Although it may benefit banks, which could more easily slash bonuses in fallow years, City headhunters say many employees actually prefer the stability of pay packaged with higher fixed salaries.

It is unlikely to lure back EU-based bankers, who were either relocated or hired locally to fulfil EU requirements after Brexit. That kind of change would more likely require the UK to revert to EU rules, so that it could continue exporting financial services throughout the bloc.
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Tony Edwards said:
Where else would they go? The bonus cap is an EU wide policy. Unless you are talking Singapore? We surely have enough bankers already anyway, we dont really need to remove the bonus cap to attract any more it is simply a bung to bankers.
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Or just any industry without arbitrary caps on pay structure
 
Tony Edwards said:
Where else would they go? The bonus cap is an EU wide policy. Unless you are talking Singapore? We surely have enough bankers already anyway, we dont really need to remove the bonus cap to attract any more it is simply a bung to bankers.
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You think the bankers hate it? It pushed up their salaries and removed a lot of pressure. Banks hate it, bankers I'm not so sure..
 
200sols said:
You think the bankers hate it? It pushed up their salaries and removed a lot of pressure. Banks hate it, bankers I'm not so sure..
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But that wasnt what it was about. The cap is there for a reason and that reason is because bankers are the same word but with a W at the front. They are generally toxic people that dont give a crap about the bussinesses they invest in or short.

The banking sector’s bonus culture was blamed for encouraging short-term profits over longer-term stability in the lead-up to the financial crisis, with Lord Turner’s 2009 review into the crash saying bonuses may have encouraged bankers to take “excessive risks”.

Bankers were also accused of taking more cash out of businesses than shareholders, putting investors such as pension funds at a disadvantage.

The hope was that, with less of a banker’s pay riding on their performance, there would be less of an opportunity to incentivise risky behaviour.
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With the caps removed it will encourage them to take greater risks again, especialy when the basic wage doesnt keep going up as it had been due to the caps.
 
So the Tories' solution to the cost of living crisis is:

* less public spending
* more money for bankers
* lower taxes for rich people
* forcing people on benefits to work longer hours or lose their benefits

What could possibly go wrong?
 
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Sankari said:
So the Tories' solution to the cost of living crisis is:

* less public spending
* more money for bankers
* lower taxes for rich people
* forcing people on benefits to work longer hours or lose their benefits

What could possibly go wrong?
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It's like they know the gig is up in a couple of years so lets go scorched earth policy while the going is good. Frustratingly it will mean whoever gets in after can spend their entire first term blaming anything that goes wrong during that term on what is hapepening now.
 
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EddScott said:
It's like they know the gig is up in a couple of years so lets go scorched earth policy while the going is good. Frustratingly it will mean whoever gets in after can spend their entire first term blaming anything that goes wrong during that term on what is hapepening now.
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The Tories have been using that tactic (successfully) for over a decade now; all they need to do is mention that note.
 
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