Bankers’ Bonuses and the Banking Industry

Debate between Shabana Mahmood and Graham Stuart

Wednesday 25th February 2015 Commons Chamber

[Shabana Mahmood]

Thank you, Madam Deputy Speaker.

This tax, alongside a restriction on pension tax relief, would fund a compulsory jobs guarantee. Let me deal with the point made by hon. Members chuntering from a sedentary position. The tax would be spent only once and only for one measure—that is, our compulsory jobs guarantee. That has been the case for as long as we have had our compulsory jobs guarantee policy. I find it interesting that the only line of attack that Government Members have on the compulsory jobs guarantee is to imply, incorrectly, that the bank bonus tax is being spent more than once. It is a weak line of attack from Government Members who do not want to engage with the substance of the policy—a compulsory jobs guarantee for the long-term youth unemployed.

Only one point was made about the substance of our policy, which was about the potential scope for tax avoidance. The first outing of the bank bonus tax introduced by the Labour Government had stringent anti-avoidance measures attached to it, and we would repeat those measures to make sure that the tax was not aggressively avoided and that all the revenue that we expect to be raised will be realised in order to fund our proposals for a compulsory jobs guarantee.

[Mr Graham Stuart (Beverley and Holderness) (Con)]

Will the hon. Lady give way?

[Shabana Mahmood]

Certainly not to a Member who has just come in for the winding-up speeches, if I may say so.

A measure such as I have described is clearly needed because we know that the latest labour force survey data show that youth unemployment was at 740,000 in the three months to December 2014. To Government Members who try to take comfort from some of the welcome decreases that we have seen in constituencies across the country, as though that means that everything is hunky-dory, I would say that 740,000 young people unemployed are 740,000 too many. There is nothing to be complacent about. We need a rocket booster under our approach to long-term youth unemployment. That rocket booster will be provided by a tax on bank bonuses to fund a compulsory jobs guarantee. Government Members should examine their consciences to decide whether they think that we do in fact need strong measures to tackle the scourge of youth unemployment, and join us in the Lobby to support our motion.

We need to restore trust and accountability to the sector. I call on the House to support the motion and the need to take meaningful action to ensure that bonuses reward exceptional performance, and that where bonuses are given, they are taxed and the revenue is used to deliver the much-needed compulsory jobs guarantee.

Higher and Further Education

Debate between Shabana Mahmood and Graham Stuart

Tuesday 11th September 2012 Commons Chamber

[Shabana Mahmood (Birmingham, Ladywood) (Lab)]

I beg to move,

That this House notes with concern that September 2012 marks the first term where students will face the trebling of student fees to £9,000 a year; further notes that barriers are also being put up for vocational routes, with direct Government support for learners cut for level 3 courses and above, which includes apprenticeships and access courses to university, and with Higher Education-style loans being introduced, costing learners up to £4,000 a year; and calls on the Government to change course and, as a first step, reduce tuition fees to £6,000, funded by reversing the corporation tax cut for banks and requiring graduates earning over £65,000 a year to pay higher interest rates on their student loans.

In just over a week, university freshers weeks will kick off in earnest ahead of the new academic year. New students will soon start arriving at their institutions excited, nervous and full of anticipation and hope for their futures as they look forward to three, maybe four, of the best years of their life. They do so against a backdrop of confidence in the quality of our world-class higher education sector, which collectively will do all it can to give them the best possible higher education experience.

But this year is also markedly different, for this year we will see the first cohort of students who as a result of the Government’s action will be paying tuition fees of up to £9,000 a year and leaving university with significant debts which for some will exceed £50,000. Until the Government changed the rules of the game, higher education had been paid for by a partnership between the student and taxpayer since 1998, but this Government’s trebling of tuition fees in conjunction with their 80% cut in the teaching grant for universities represents a betrayal of future generations of students.

The partnership model for funding has been torn up, and students have been told to go it alone. They must bear the burden of the cost entirely on their own. We all know that this is not what the Liberal Democrats said they would do before the general election.

[Mr Graham Stuart (Beverley and Holderness) (Con)]

The hon. Lady is speaking fluently from the Dispatch Box, but she is doing our young people a disservice. She is scaremongering and sending them the message that they cannot afford university when the monthly payments are lower than they were before, the threshold before they start paying is higher than it ever was before and anyone who suffers illness, who is pregnant and stops working or has—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. I am sure that the hon. Gentleman wants to catch my eye and make a speech later rather than waste time now.