City and business leaders have attacked George Osborne’s “simplistic” proposals to cap bankers’ bonuses, calling on the shadow chancellor to adopt a “wiser” approach to a complex issue.
The backlash came after Mr Osborne urged the government to impose an “emergency” ban on banks with retail arms paying cash bonuses of more than about £2,000 per employee. Bonuses should instead be paid in new equity capital, freeing up an estimated £10bn of cash for lending to business, he told a London event.
