David Rutley
Main Page: David Rutley (Conservative - Macclesfield)Department Debates - View all David Rutley's debates with the HM Treasury
(13 years, 5 months ago)
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Mr Osborne
I have made it very clear that I want to see bonuses lower this year than they were in the last year of the Labour Government. That is the objective. The Labour party either supports that or it does not, but that is what we are seeking to achieve with the banks.
David Rutley (Macclesfield) (Con)
I share and understand the concerns that people have about the sheer scale of bankers’ bonuses, but it is also vital to look at how bankers are measured. When the Governor of the Bank of England came to the Treasury Committee in November, he said that he felt it was better to reward bankers according to return on assets rather than return on equity. I wonder whether the Chancellor believes that that view merits further consideration.
Mr Osborne
That is one of the issues being considered, and I noted the Governor’s comments. The code of practice has a number of constraints on how bonuses are paid. It is a vast improvement on last year’s situation, and will help create a better regulated banking sector.