Sunak tells UK executives to curtail their pay

November 18, 2022

Rishi Sunak has urged the UK’s top executives to demonstrate leadership during the cost-of-living crisis by showing “restraint” with their pay.

The British Prime Minister made the comments as representatives from the world’s 20 wealthiest nations met at the G20 summit on the Indonesian island of Bali on Tuesday and Wednesday.

With the government holding public sector pay below inflation, Sunak was asked whether executive pay should also be reined in.

Sunak told ITV: “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. I’d say that all the time.

“Of course in a situation like this I’m sure executives of most companies will be thinking about pay settlements for senior management, for their workers and making sure they are fair.

“That’s what everyone would expect and I’m sure that’s what most companies are doing.”

With a recession looming, Sunak warned that generous pay awards in British boardrooms will increase inflationary pressures by fuelling a wage-price spiral.

His comments came before chancellor Jeremy Hunt drew criticism for lifting the cap on the bonuses of bankers and private equity bosses in Thursday’s Autumn Statement.

Hunt unveiled a raft of measures including reducing exemptions on dividends and capital gains taxes that will hit those with assets like equities and property.

Rishi Sunak also reduced the threshold at which the 45p rate of income tax applies from £150,000 to £125,140.

Shadow chancellor Rachel Reeves responded in parliament and said: "Of all the things he could save from the wreckage of the kamikaze budget that he chooses to press ahead with is their plan to lift the cap on bankers' bonuses.

"At a time he's urging wage restraint for everybody else, how can he remotely claim that this is fair?"

Sunak’s comments at the G20 came as his new administration faces the threat of strikes bringing Britain to a standstill this winter, with workers including nurses voting for industrial action in support of demands for rises to keep pace with ten percent inflation.

And he made clear that wage increases of up to 17 per cent being sought by the Royal College of Nursing were “unaffordable”.