Darling proposes to rein in city bonuses

Chancellor Alistair Darling is under increasing pressure to implement a tighter regime in curbing exorbitant bonuses paid out to City executives.

A discussion at yesterday's Labour Party conference again saw Darling condemn parts of the banking sector and in particular, the City's bonus culture.

The Independent reported Darling's bid to reign in the bonuses which are fundamentally driven by risk-laden products.

'It's essential that bonuses don't result in people being encouraged to take on more and more risk without understanding the damage that might be done, not just to their bank, but to the rest of us in the wider economy,' he said.

In addition, Derek Simpson, joint leader of Unite, said the bonus culture has evolved to create a different socio-economic class entirely.

'It has created an all-powerful mega-rich elite with no connection to ordinary people; an amoral class without a care for how their reckless behaviour is now wrecking lives,' he said.

Energy companies also came under attack at the conference, with former environment minister Michael Meacher criticising the profits generated by the sector.

'There could not be a stronger case for a 'Robin Hood' tax than now. Are we going to let these companies hold this country to ransom like this?' he said.

Further Reading:

'Irresponsibility' fuelled meltdown: Brown

City bonuses face fair value reckoning