George Osborne is set to water down plans to force disclosure of bank bonus payments above £1 million, in a move that will delight the City but sets up a political clash with business secretary Vince Cable and the Liberal Democrats.
The chancellor has been lobbied by senior bankers who claim that if Britain introduces more pay transparency unilaterally it could put the City at a disadvantage and lead to some banks shifting activity to New York or other financial centres.
Mr Osborne shares those concerns, as does Sir David Walker, author of an influential report last year on City pay disclosure, who argues in the Financial Times that the government “would be mistaken” to go it alone.
http://www.cnbc.com/id/40310128