Vince Cable’s appointment as business secretary has been described as ‘terrifying’ by Ken Brotherston, chief executive of international executive search firm Kinsey Allen International.

Brotherston says: “This is a terrifying development.  Vince Cable has been a leading critic of the UK banking sector over the last few years and, as Liberal Democrat Treasury spokesman he demanded a clampdown on banking bonuses, and repeatedly referred to the investment banking sector as ‘casino banking’. 

“The fact that he’s now been given special responsibility for the banks is real worry.  Had he been named Chancellor, he might have had better things to do with his time, but this way, he’s going to have nothing to do but tinker with the banking system, potentially doing untold damage to the industry.  During the campaign, Cable described bankers as ‘Scargills in pinstripes’ and pledged to limit cash bonuses to a maximum of £2,500. 

“He may have piped down now – but the City shouldn’t imagine we have seen the last of his radical anti-banker side.  If he gets the chance to impose a £2,500 cap on cash bonuses he will, at a stroke, ensure that the UK government loses billions of pounds in income tax and national insurance receipts and drive a much higher proportion of much needed talent to other financial centres around the world. Perhaps we will see India’s banks outsourcing to London.  It would be funny were it not so frightening.”