Youth Unemployment and Bank Bonuses

Julie Hilling Excerpts

Monday 23rd January 2012 Commons Chamber

[Danny Alexander]

The Government have made decisions to improve the benefits available through the enterprise investment scheme precisely to encourage more people to invest in small firms in such a way. The new seed enterprise investment scheme, which we announced in the autumn statement, will further help new businesses to be created through that route.

We have already said that for RBS and Lloyds Banking Group there will be a limit of £2,000 on cash bonuses, as was imposed last year, and let me reiterate that the bonus pool this year must be far, far lower than it was last year, and more transparent too. Tackling bank bonuses and youth unemployment is not just an economic challenge, but a challenge that is at the centre of the coalition’s purpose, which is to promote a sustainable and responsible banking sector that puts consumers’ needs at the centre of the financial system.

[Julie Hilling (Bolton West) (Lab)]

Will the right hon. Gentleman give way?

[Danny Alexander]

I shall give way one last time, and then I shall finish my speech.

--- Later in debate ---

[Julie Hilling]

Is the right hon. Gentleman confirming, then, that the chief executive of RBS will only get a £2,000 bonus?

[Danny Alexander]

I am doing no such thing, because those announcements will be made in due course. I have said that bonuses in the banks that we own will have to be far lower than they were last year. The cash element of bonuses will be limited to £2,000 for all employees, but of course there are other parts to bonuses, too.

Returning our country to prosperity has been the founding purpose of the coalition Government, but in our determination to restore growth, we will put fairness at the very heart of our recovery, tackling gross inequity in senior pay and tackling the perils of youth unemployment to ensure that young people’s prospects are not blighted in the way that those of too many were in the 1980s.