TaxCorporate TaxDarling proposes to rein in city bonuses

Darling proposes to rein in city bonuses

The Labor Party's annual conference has once again highlighted ongoing concerns over City bonus schemes and energy company profits

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

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