Bankers’ Bonuses and the Banking Industry

Debate between Cathy Jamieson and Marcus Jones

Wednesday 25th February 2015 Commons Chamber

[Richard Fuller]

Will the hon. Lady give way?

[Mr Marcus Jones (Nuneaton) (Con)]

Will the hon. Lady give way?

[Cathy Jamieson]

No, I am going to finish this point because it answers a number of questions that hon. Members have put.

We will use the money generated to fund our compulsory jobs guarantee, creating a paid job for every 16 to 24-year-old who has been out of work for over a year, and for those over the age of 25 who have been out of work for more than two years. According to the latest labour force survey, youth unemployment was 740,000 in the three months to December 2014, which was an increase of 3,000 on the previous quarter. We know that being unemployed while young damages people’s prospects years into the future. Research shows that young people who have been unemployed for a year will, on average, be £125,000 worse off over their working lifetime, which means that a person on the average wage would have to work nearly six years longer to make up for the cost of being unemployed while young.

[Mr Jones]

rose—

[Cathy Jamieson]

I am not going to give way because I am making important and serious points about the future of our young people. I have been very generous in giving way and I want to finish this point. Our bank bonus tax not only will offer a lifeline for thousands of young people, helping them to earn, learn, and get a foot on the career ladder, but will help the economy and mean that the banks give something back to society.

In addition to that and our wider programme of reform, we will extend the deferral and clawback period for bonuses, ensuring that rewards are paid out proportionately and can be recouped when evidence of reckless or inappropriate behaviour is revealed further down the line. As I said, the financial crisis and recent scandals have shown that risky decisions can take up to a decade to have an impact. The next Labour Government will therefore ensure that if bankers have been shown to have acted inappropriately or made reckless decisions, banks will be able to claw back any bonuses awarded. We will act on the recommendations of the Parliamentary Commission on Banking Standards by extending the period for the clawback of bank bonuses that have already been paid to at least 10 years. We will also extend deferral periods for senior managers to at least 10 years, which will help to deter the rash and short-sighted behaviour that we have seen in the past, and to encourage banks and their employers to have a view of the long term.

Finance Bill

Debate between Cathy Jamieson and Marcus Jones

Monday 1st July 2013 Commons Chamber

[Mr Marcus Jones (Nuneaton) (Con)]

rose—

[Cathy Jamieson]

Let me answer my hon. Friend’s point because it is important to understand the impact that this Government’s policies are having on families across the country. He makes the important point that a couple with children in such circumstances will face difficulties, and in some instances must make choices about how they will pay for things that we or our children perhaps take for granted. Government Members have simply failed to recognise or respond to, or in many instances acknowledge, that point.

[Mr Jones]

rose—

[Cathy Jamieson]

I hope that the hon. Gentleman will acknowledge that point.

--- Later in debate ---

[Mr Jones]

Will the hon. Lady say whether Labour would reinstate the 50p tax rate if it were in government, and if that is the case, when would that be? Can she say how much money that move would raise for the Exchequer?

[Cathy Jamieson]

The hon. Gentleman has probably heard many Opposition Members stand at the Dispatch Box and make our position absolutely clear: if we were in government just now, that is not what we would be doing. There is a whole range of other things—

[Mr Jones]

rose—

[Cathy Jamieson]

I want to finish this point. If the hon. Gentleman can contain his excitement, I am sure he will have the opportunity to develop his arguments at some stage. It is important to recognise that the Government are doing many things that Labour simply would not do. We suggested a whole range of things that the Government could do to get growth back into the economy, and I will mention some of those today. It is important, however—[Interruption.] I hear the Minister from a sedentary position say, “Borrowing more”. Is that an admission that his Government are borrowing more than they set out to do, that they have not got the deficit down as planned, and that they have not brought growth back into the economy as they promised? I would be more than happy if the Minister wished to put something on the record at this point. [Interruption.] He does not, so I will give way to the hon. Member for Nuneaton (Mr Jones).

[Mr Jones]

The hon. Lady said that if Labour was in power now it would reverse the decision and reinstate the 50p tax rate, but there will not be a general election for the next two years. If the Labour party is in government in two years’ time, would it then reverse that decision and reinstate the 50p tax rate—yes or no?

[Cathy Jamieson]

I find it astonishing that Government Members never seem to take any responsibility for what is going on under their watch. Under their watch, the deficit has not come down as much as they promised, borrowing is higher than planned, and the Government have failed to get growth back into the economy.

Fuel Duty

Debate between Cathy Jamieson and Marcus Jones

Monday 12th November 2012 Commons Chamber

[Mr Marcus Jones (Nuneaton) (Con)]

I thank the hon. Lady for giving way. She said that we should listen to the voice of industry and of consumer groups. Did the Labour party listen to those groups when it put fuel duty up by 55% during its time in government?

[Cathy Jamieson]

Again, I regret the tone of the hon. Gentleman’s contribution. This is one issue on which we had the opportunity to unite and send a message to constituents, to all those who have contacted us and to businesses that are struggling, that the whole House could come together and agree. It is disappointing that the parties on the Government Benches have not done that.

My constituents and others are disappointed that while the Prime Minister and the Chancellor focus on giving tax cuts to millionaires, millions of families, businesses and pensioners are being forced to pay more. The cuts in child tax credits and child benefit, the hike in VAT and the cuts in age-related personal allowances have hit people hard throughout the country, just at the time when they and the economy need help.

The Leader of the Opposition has called this slow, remorseless squeeze

“a quiet crisis that is unfolding day by day in kitchens and living rooms in every town, village and city up and down this country”.

That is exactly what it is.