The United Kingdom and the European Union are set for a renewed battle, this time over bankers’ bonuses.

The EU wants to limit bonuses for top bankers to 100% of salaries, or 200% if given shareholders’ approval.

The proposal has wide support from European member states, but has been rejected by the UK, where the City of London remains a global financial hub.

The UK also rejected earlier EU plans to introduce a financial transaction tax (FTT) on similar grounds that it...