Thursday, 21 January 2010

An excellent Early Day Motion on the banking crisis

Jeremy Corbyn et al have hit the nail on the head. As I have been arguing for some time, it is completely unfair that ordinary people, businesses and public services are expected make the sacrifices required to clear up the mess caused by elements of the financial sector, while they themselves are not only bailed out but use the benign environment caused by the rescue package to reap huge profits and pay huge bonuses. That is why a tax on bonuses is justified and a windfall tax on financial services and a 'Tobin' tax are necessary. As ever, President Obama leads the way and we fumble in his slipstream for fear of offending the true power-brokers of British politics - the City.

George Osborne is therefore being disingenuous when he trumpets on about the fact that "we are all in this together". This is his way of spreading the cost of cleaning up the mess as far as possible away from the City, while simultaneously appearing to sound communitarian.

681 PUBLIC EXPENDITURE AND THE DEFICIT

John McDonnell
Mr David Drew
Ms Katy Clark
Jeremy Corbyn

That this House notes that in his interview in the Financial Times of 19 January 2010 the Chancellor of the Exchequer has admitted to a planned policy of 17 per cent. cuts in expenditure across Government departments other than schools, health and the police force, the early withdrawal of the 50 pence tax rate and an end to the tax on bonuses; and therefore judges that this will mean that the ordinary people of the UK will be the ones who are to pay for the economic crisis, not of their making, and that many of those who, through their reckless greed caused the crisis, will walk away unscathed, receiving new bonuses and playing once again in the casino economy.

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