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Boris: Nothing can damage the City more than Brexit

McDonnell: Hold my beer

Financial services companies in the UK will face severe constraints, and perhaps a ban, on awarding bonuses under a future Labour government, the shadow chancellor has warned.

John McDonnell told the Financial Times that he was putting the City of London on notice that it was time to end bonuses voluntarily or face draconian curbs.

“If it continues and the City hasn’t learnt its lesson, we will take action, I’ll give them that warning now,” he said. “If we have to take action, we will. People are offended by bonuses.”

The shadow chancellor said that one of his first moves on entering the Treasury would be to explore ways to crack down on extravagant payments to bankers and others in the financial services sector.

He said he would launch a consultation looking at options ranging from increasing shareholder power to restrictions on the size of bonuses.

“It’s become part of the City culture and it’s happened over years,” Mr McDonnell said. “It’s become part of the culture and it is so separate and distinct and isolated from the rest of the real-world economy and that’s why people are so offended by it. It’s a reflection of the grotesque levels of inequality that people now find so offensive.”

source: Subscribe to read | Financial Times