[Re: EU cap on bankers’ bonuses puts a vital British industry under attack, Friday]
The UK’s financial services sector is one of the biggest contributors to the UK's economic growth, accounting for almost 10 per cent of GDP. Last year, the sector contributed £63bn in tax, and over £20bn of this came from international firms that had decided to base themselves in the UK. These organisations create jobs across the whole of the country – from JP Morgan in Bournemouth to Citigroup in Belfast. The financial services sector is also vitally important to the European Union. It accounts for €614bn (£531m) of gross value added, nearly 6 per cent of total EU economic output, and employs 6.6m people across the EU. These rules not only affect UK and EU firms operating within the EU, but they will have to apply them globally, meaning they will be at a competitive disadvantage in other parts of the world. There is a clear risk that our competitors will do better because of this ruling. Remuneration should correspond with the creation of long-term, sustainable value, and executives should be rewarded with fair pay that is transparently awarded and endorsed by stakeholders. However, for the UK and the EU to remain internationally competitive we must ensure that well-run, successful firms are able to compete against their peers in the US and Far East.
Chris Cummings, chief executive, TheCityUK
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Above all, the Eastleigh result reflects an overwhelming view that the main parties lack any kind of authenticity.
In the 1994 Eastleigh by-election Labour got 28 per cent. Last night they didn’t even get 10. No revival for Ed Miliband’s Labour.
LibDems winning Eastleigh with Ukip second is the worst possible result for David Cameron.
Boris Johnson’s comment that an EU cap on bankers’ bonuses is “deluded” is absolutely spot on. It’s a terrible policy proposal.