Ed Balls: Labour publishes banking reform plans with new rules on bonus clawback and funding for a British Investment Bank
Today Ed Balls and Cathy Jamieson have published Labour's plans to reform the banking sector so that it better supports growing businesses, economic growth and rising living standards.
The banking reform paper is part of Labour's economic plan and sets out a series of measures the next Labour government will take, including:
- Extending clawback of bank bonuses that have already been paid in cases of inappropriate behaviour to at least 10 years and enacting legislation, passed by the last Labour government, to require banks to publish the number of employees earning more than £1 million.
- Creating a proper British Investment Bank to provide vital funding for small and medium-sized businesses. All funds raised from the planned increase in the licence fees for the mobile phone spectrum - estimated to be up to £1 billion in the next Parliament, subject to Ofcom consultation – will be allocated to the British Investment Bank.
- Introducing a one-off tax on bankers' bonuses to help pay for Labour's Compulsory Jobs Guarantee – a paid starter job for all young people out of work for 12 months or more, which people will have to take up or lose their benefits.
- Addressing the lack of competition in the sector. We welcome the Competition and Markets Authority inquiry which we called for and want to see at least two new challenger banks and a market share test to ensure the market stays competitive for the long term.
- Extending the levy on the profits of payday lenders to raise funding for alternative credit providers.
Please see a link to Labour's plan for banking reform here: http://www.yourbritain.org.uk/agenda-2015/policy-review/labours-plan-for-banking-reform
Please also see a link to a press release from Ed Balls and Cathy Jamieson here: http://press.labour.org.uk/post/110851130494/labour-publishes-banking-reform-plans-with-new