A GMB union leader asked the boss of the Bank of England (BoE) today whether he will denounce plans for “uncontrolled bankers’ bonuses.”

BoE governor Andrew Bailey, who earlier this year demanded workers show “wage restraint” amid soaring inflation, needs to say where he stands on the issue, union general secretary Gary Smith said.

Prime Minister Liz Truss has backed abolishing the cap on bankers’ bonuses as part of a post-Brexit shake-up of City of London rules.

The widely condemned change, likely to be introduced via Chancellor Kwasi Kwarteng’s mini-Budget tomorrow, comes despite concerns it could encourage the type of risky behaviour which prompted the 2008 financial crash.

In a letter, Mr Smith wrote that Mr Bailey “says he wants workers to show restraint in pay bargaining to control inflation.

“Will he denounce uncontrolled banker bonuses for the same reason? If he does, he needs to come out and say it; otherwise, it is gross hypocrisy.

“Inflation is being driven by energy prices, profiteering and supply chain disruptions, not pay. 

“The [PM] is sticking two fingers up to workers who are being told to tighten their belts.”