You can’t bank on bumper bonuses for long
EXCLUSIVE
BY NIGEL NELSON Political Editor FATCAT bankers will have just two years to enjoy their hefty Tory bonuses... until Keir Starmer becomes PM.
He declares today that he will also order Labour MPs to vote against the abolition of the top 45% income tax rate for £150,000 earners.
But the 31 million taxpayers who saw a penny lopped off their 20% basic rate in Kwasi Kwarteng’s budget on Friday will be allowed to keep that rebate after the next general election.
In his first national newspaper interview since Liz Truss became
PM, Sir Keir said: “Removing the cap on bankers’ bonuses when people are really struggling to pay their bills shows the Tories are absolutely tone deaf to what so many people are going through.
“And scrapping the 45% tax rate is wrong in the middle of a cost-of-living crisis. We wouldn’t be doing it.
“The Tories presided over stagnation for 12 years and they have done nothing to break that cycle.”
Sir Keir is appalled that a
£1million earner is being handed more than £40,000 back when so many ordinary workers do not know where the next pound is coming from. The tax changes come in next April.
Meanwhile, thanks to Ms Truss, bankers will no longer have bonuses capped at 200% of salary – so the sky is the limit.
Sir Keir cautioned he cannot make final tax decisions until he is
PM, but
Labour’s direction of travel is
clear. Shadow
Health Secretary Wes Streeting said yesterday he will protect the £314million of public money going into care homes by clamping down on bosses who avoid tax.
And deputy leader Angela Rayner will promise today to stop handing £40billon in contracts to firms with tax haven links – which loses the Treasury £17billion in corporation tax revenue.
Sir Keir is in Liverpool today for his third Labour conference as leader and will put the party on an election footing under the slogan “A greener, fairer Britain”.
At his first conference he told delegates why Labour needed to change, and last year he told them about himself. Now it is time to get down to business.
On tackling climate
Tories are tone deaf to struggles so many face in paying their bills
SIR KEIR STARMER ON BANKERS’ BONUS BOOST
change, he is in lockstep with our new King – but with one big difference. Charles thinks economic growth damages the environment, while the Labour leader sees it as a way to create a more prosperous Britain – and that will be the centrepiece of his keynote speech on Tuesday.
He said: “The climate crisis is the biggest opportunity this country has had for decades to get ahead on the next generation of jobs. The mission is an economy which works for working people while dealing with our obligations on the climate crisis.
“I’m talking about the next generation of jobs. Green for me equals jobs for the future. It’s not being green for the sake of it. It’s a reflection of my working class upbringing and what a skilled, secure job means for a family.
“And I’m a father and I have an obligation to my children and to tackle the climate crisis.”
That means setting a target to remove all fossil fuels from Britain’s power system by 2030 and making Britain a net exporter of clean energy – five years ahead of current plans.
And there will be a massive expansion of renewables including onshore and offshore wind, solar, hydrogen and nuclear power, which could add up to 700,000 new jobs.
Sir Keir said: “We are determined to fight the election on growth and I will set out my mission to do that for all parts of the UK.
“The cost-of-living crisis, the NHS on its knees and law and order out of control are the immediate issues which have to be dealt with. The climate crisis gives us the opportunity to grow the economy for working people.”
Sir Keir is criticised for not having policies even though he is brimming over with them. But he accepts he may have to shout about them more. On that note, he tweeted last night: “Tory casino economics is gambling the mortgages and finances of every family in the country. Labour will secure growth for working people, that benefits all communities.”
He says his government would reform the House of Lords, clean up politics and put power into communities nationwide. A Resolution Foundation report yesterday revealed that budget tax changes will give those in London and the South East an average £1,600 but only £500 to those in Wales, the North East and Yorkshire. Under Labour, private schools would lose charitable status and the
£1.7billion saved would go to hiring teachers in state education. Childcare would become more affordable, so parents would not have to give up work to look after kids. And of the Irish protocol row, which is preventing a trade deal with the US, Sir Keir said: “We would make it work better, not tear it up.”
He would deal with migration by speeding up asylum applications and opening safe routes.
Shadow Home Secretary Yvette Cooper will hire 13,000 more neighbourhood police and new rape courts will fast track justice for victims.
The Tories have nicked the energy price freeze policy – though borrowing £60billion to do it gave Sir Keir a furrowed brow. He added: “We said freeze prices and the PM did. But the question is how to pay for it. We’d put the cost on the oil and gas companies. They are putting it on borrowing.”
Sir Keir is not planning on going easy on Liz Truss. He said: “My starting point with everyone is respect. But politically I couldn’t disagree with her more.
“There is a massive divide between us.”
While on the subject, the Tories have had three female leaders. What about Labour?
Sir Keir said: “Do we need a woman leader in the future? Yes.
“The party acknowledges that. I want to win the next election and be the next Prime Minister.
“But I’ve no doubt a future leader will be a woman.”
A woman should lead Labour one day... but first, let’s winelection SIR KEIR ON THE ISSUE OF WOMEN IN POWER