Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of the eventual cost to HM Treasury of the European Union's proposed bonus caps should it be enforced in the United Kingdom.

The ‘bonus cap' provisions of the Capital Requirements Directive came into force at the beginning of 2014. Given this short time period, an estimate of the Exchequer impact of the cap cannot be made.

The ‘bonus cap' was introduced by the European Parliament into the CRD4 package without an appropriate economic impact assessment. This is part of the reason the UK is challenging this measure in the European Court of Justice.