Senior Labour figures have been left annoyed and perplexed by Rachel Reeves’s surprise announcement that the party will not reinstate a cap on bankers’ bonuses if it wins the next election.
The shadow chancellor said on Wednesday that she had “no intention” of bringing back the cap, introduced after the 2008 financial crisis to limit annual payouts to twice a banker’s salary, saying she wanted to be the “champion” of a thriving financial services industry.
