Banking (Responsibility and Reform)

David Ruffley Excerpts

Tuesday 7th February 2012 Commons Chamber

[Mr Umunna]

I will move on.

Given that market mechanisms since the crash have not operated to rein in excessive pay in the banking sector, the bank bonus tax, we have argued, should be repeated, on top of the bank levy, in recognition of the fact that the banking sector owes a responsibility to society in general. If the claim that we are all in it together is to mean anything, the reintroduction of that tax is a must. It would create 100,000 youth jobs and 25,000 affordable homes. It would do immeasurable good to the reputation of the sector and support jobs, growth and business in the UK economy.

[Mr David Ruffley (Bury St Edmunds) (Con)]

I agree with some of the things that the hon. Gentleman has said, but the last Labour Chancellor said that

“it will be a one-off thing because, frankly, the very people you are after here are very good at getting out of these things”.

Those were the words of the right hon. Member for Edinburgh South West (Mr Darling) in autumn 2010. What has changed since?

[Mr Umunna]

I would say to the hon. Gentleman that they were not that good at getting out of it, because the bank bonus tax was expected to raise about £500 million, but in the end it raised £3.5 billion, which is a sizeable sum.