Jeremy Hunt is expected to lift the cap on bankers’ bonuses in his autumn budget on Thursday.

The Chancellor is set to scrap the cap, one of the few measures introduced by previous incumbent Kwasi Kwarteng to survive, as he looks to restore the UK’s economic credibility, the Financial Times reports.

The Prime Minister had urged bosses to keep down their pay in order not to exacerbate inflation.

Rishi Sunak said: “Of course 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.”

Bournemouth Echo:

Speculation continues about what exact measures will form part of the budget on Thursday, which has come with warnings from both the PM and the Chancellor of “difficult decisions” to be taken as Mr Hunt tries find up to £60 billion from a combination of hikes and spending cuts.

In part, the budget is widely expected to raise finances through stealth taxes by freezing the rates in which workers begin paying higher rates of tax with inflation and pay increases dragging more people into higher bands.

But tough spending cuts are likely too, with Mr Hunt reportedly eyeing up plans to cut funding for the Government’s homes for Ukrainian refugees scheme.

The Telegraph on Wednesday reported that the Chancellor is considering plans to reduce the amount of funding received by councils for some of the services for refugees hosted by UK families, in a move apparently being resisted by Levelling Up Secretary Michael Gove.

The paper also reported that Mr Hunt will use the budget to announce measures to support the long-term sick back into jobs, an issue that has becoming a growing preoccupation for the Government.

Shadow chancellor Rachel Reeves said: “Over the last decade, Tory economic failures and wasted opportunities have led to Britain falling behind on the global stage, and left us with low growth, low productivity and widening inequality.

“If I was Britain’s Chancellor giving the autumn statement this, I’d be focused on making fairer choices for working people who are bearing the brunt of this crisis – and I’d be putting forward a real plan to grow our economy.”