Ministers are planning to slash red tape over City bosses’ pay in a bid to attract more firms to the UK in the wake of Brexit.
However, the news will raise eyebrows given households across the country are facing rapidly increasing bills across the board.
According to a report in the i newspaper, the Cabinet Office minister Steve Barclay has written to the Chancellor calling for “deregulatory measures to reduce the overall burden on business”.
It was reported this would mean slashing restrictions on director and non-executive director remuneration.
“I trust you’ll agree this is a more proportionate regulatory response and reflective of the new approach to regulation outlined in the ‘Benefits of Brexit’ publication in January,” a leaked copy of the letter reportedly said.
The move has been criticised as unsavoury amid a cost of living crisis, with economists warning of a recession looming.
Top bosses in the Square Mile have been calling for the curbs to be scrapped for many months and have previously said they represented a potential fresh 1980s-style “big bang” moment.
“Bonus caps were a perfect example of how the EU led over prescriptive regulation,” Daniel Hodson, chairman of The CityUnited, told City A.M. earlier this year,
“Neither firms nor employees will be sorry to see the end of them, rejoicing in the benefit of Brexit restored independence,” he added.
London Stock Exchange boss Julia Hoggett has also said that the City needed to have a “grown up conversation” about remuneration if top firms are to continue to do business in the UK.
The Department for Business, Energy and Industrial Strategy (BEIS) said it was looking at “whether there are any unnecessary restrictions on paying non-executive directors in shares, which could ensure they are fully invested in the success of the company they run”.
“If the company does well, directors do well,” they added.
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