To ask the Chancellor of the Exchequer, pursuant to Answer of 17 October 2022 to Question 61263 on Financial Services: Incentives, if he will take steps to conduct an impact assessment of the potential impacts of lifting the cap on bankers' bonuses, including on inflation rates.

The removal of the cap is a regulatory change being proposed by the independent Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). The regulators, as part of their rule-making processes, have undertaken (and published) their assessment of how removing the cap impacts their objectives and “have regards” and this describes the expected impact on individuals’ incentives.