LABOUR have been told to “come clean” after revelations that the party’s decision to back Liz Truss’s policy of unlimited bankers’ bonuses followed accepting millions from city donors.

On Thursday, OpenDemocracy reported that bankers and city-linked firms had "handed Labour the equivalent of £2 million since the party launched its charm offensive on big business in 2022”.

Commenting, Tommy Sheppard MP said: "Sir Keir Starmer must come clean as to why his party have ditched their support for capping bankers' bonuses.

"Serious questions must now be asked as to whether or not there is a connection between millions of pounds in donations, and a drastic U-turn on an important policy.”

Labour’s shadow chancellor Rachel Reeves confirmed that her party would not put a cap on bankers’ bonuses earlier in the week, leading to a backlash both within and outwith the party.

In 2021, before Truss lifted the cap, some £4 billion in bonuses was paid out by four big UK banks alone: HSBC, Lloyds, Barclays, and Natwest.

Comparisons have been made to Labour’s support for the two-child cap on benefits and the associated rape clause.

Sheppard said: "After lining Labour's coffers with cash from his fat-cat chums in the city, Sir Keir Starmer now finds himself in the unbelievable position where he backs a cap on support for kids from low income families, but staunchly opposes a cap on bankers' bonuses.

READ MORE: Richard Murphy: Labour are backing bankers at the expense of ordinary people

"However, as well as coming clean on dodgy donations from banking firms, Sir Keir must also clarify if his party's new NHS policy to 'hold the door open' to private investors is also connected to large donations.

"Unlike Sir Keir Starmer's Labour party, the SNP will always stand up for Scotland's values, prioritise support for working families, and protect our NHS."

The news comes after Angela Rayner, Labour’s deputy leader, visited Scotland to campaign alongside Scottish Labour’s Anas Sarwar.

The SNP said she had a “brass neck” to campaign in a constituency where 1600 children are impacted by the two-child benefit cap her party supports.

Sarwar had previously strongly criticised the Conservatives for lifting the cap on bankers’ bonuses, calling it “morally bankrupt”.

Labour have been asked for comment.