Oral Answers to Questions

Debate between Lord Coaker and Mark Hoban

Tuesday 8th February 2011 Commons Chamber

[The Financial Secretary to the Treasury (Mr Mark Hoban)]

Our objective in these discussions is to create a banking industry that lends to the British economy, contributes to the Exchequer, and supports economic growth and employment. The Government are in discussions with the banks to see if a new settlement can be reached so that bonuses and remuneration policies are more transparent and levels of bonuses paid are smaller than they would otherwise have been. Alongside this, we are looking at options to ensure that banks make an appropriate contribution to local economies and communities and provide the credit required to support the economic recovery, facilitate growth and create jobs.

[Vernon Coaker]

Can the Minister tell the House why the Chancellor refuses to adopt Labour’s plan to repeat last year’s £3.5 billion bank bonus tax, as well as the bank levy, and use that money to help create the jobs and growth that so many of our communities badly need?

[Mr Hoban]

The hon. Gentleman should remember the words of the former Chancellor of the Exchequer, who said that the bank payroll tax did not work. Labour Members went into the last election ruling out a bank levy; they would not take the action that we have taken to ensure that banks pay a fair contribution to the costs they pose to the economy.