Rishi Sunak: City should show ‘restraint’ on pay – but no u-turn on banker bonuses
Rishi Sunak said Britain’s top business bosses needed to show ‘restraint’ on pay this year amid inflation concerns.
“In a situation like this, I’m sure executives of most companies will be thinking about pay settlements for senior management, for their workers, and making sure they are fair,” the Prime Minister told broadcasters whilst in Bali for the G20 summit.
However Sunak gave no indication that he would u-turn on one of the few Liz Truss-era policies which had survived his reign, the move to remove the cap on banker bonuses.
But he did say “I would say to all executives to embrace pay restraint at a time like this and make sure they are also looking after all their workers.”
Sunak’s comments come as wages are not keeping up with inflation – effectively a real-terms pay cut for the nation.
Some think-tanks estimate it’s the worst economic picture for average workers for decades.
Strikes are becoming a regular occurrence across the country as unions bemoan the failure for wages to keep up with the cost of living.
Rishi Sunak’s next political headache, after the Autumn Statement set to be delivered by the Chancellor Jeremy Hunt on Thursday, will be a planned strike by nurses.
Their union is demanding a 17 per cent increase in pay which Sunak has described as “unaffordable.”
Hunt is expected to hike council taxes as well as bring down the higher rate tax threshold to £125,000, as opposed to £150,000. Truss and her Chancellor Kwarteng had pledged to ditch the higher rate entirely. It is expected to be one of the most aggressive tax hiking budgets ever delivered by a Conservative government,
The PM has been in charge for less than a month but has already been forced to defend a host of decisions, including bringing back Gavin Williamson to Cabinet – a decision that ended with the former Education and Defence Secretary quitting amid bullying rumours.