Oral Answers to Questions

Debate between Nick Smith and Andrea Leadsom

Tuesday 2nd September 2014 Commons Chamber

[Nick Smith (Blaenau Gwent) (Lab)]

9. What recent representations he has made to institutions of the EU on the cap on bank bonuses.

[The Economic Secretary to the Treasury (Andrea Leadsom)]

The Government are challenging the bank bonus cap provisions under EU capital requirements directive IV. We think that those rules will undermine the progress that we have made to make sure that bankers’ pay is aligned with long-term performance and that there are no rewards for failure or wrongdoing.

[Nick Smith]

The Chancellor was much too complacent earlier. Youth unemployment in Blaenau Gwent is still way too high. Why do the Government refuse to repeat the tax on bank bonuses? That could fund guaranteed jobs for young people throughout the UK.

[Andrea Leadsom]

As the hon. Gentleman will know, the Government have instead introduced a permanent bank levy on bankers’ balance sheets, which, according to the Office for Budget Responsibility, will raise £8 billion during the life of this Parliament, and up to £18 billion by 2018-19, so they are paying a fair share towards our economic recovery.