Banks must be brought to book, says MP

AN OLDHAM MP is warning the Chancellor to go further than just taxing bank bonuses if they are to quash growing public anger.

In his Pre-Budget report tomorrow, Alistair Darling is expected to announce a one-year windfall tax on bonuses paid to some UK-based bankers.

The Chancellor said he had run out of patience and would not be held hostage by the City. State-owned Royal Bank of Scotland reportedly wants to pay a total of £1.5bn in bonuses to investment banking staff. The board has threatened to quit if the Government blocks the move. Mr Darling said: “We are not going to be held to ransom by people who believe you can pay extraordinarily high bonuses without regard to what’s going on.

“As we come through a difficult period we expect those with broader shoulders to bear the greatest burden.”

Oldham West and Royton MP Michael Meacher has been calling for Government to take action over the banks for months.

He said: “The Government really has to do this because there has been such anger, not only will it be economically good but politically as well, especially when there is a freeze on people’s pay and public sector jobs are going.

“The Government should go further, limit pay altogether of the banks that are in public ownership.

“In tomorrow’s Pre-Budget Report, the Government has a last chance to act on the public’s crescendo of anger against the bankers for their greed, arrogance and now shamelessness. They simply don’t get it, but the Government better had.” Mr Meacher said it was not the state that had taken over the banks but the banks have taken over the state.

The Labour MP warned: “The public won’t take this pussy-footing around, this soft-shoe shuffle round the banks, any more. I have never known such universal derision and hatred directed at an institution — not even MPs.

If the Government doesn’t act decisively this week to bring the bankers to order, it will be the most broken-backed in modern times.”