Commons Sense

House of Commons · Ministers' Questions

Bankers’ Bonuses

Tuesday 11 October 2022 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Key points

  • Marsha de Cordova questioned the potential effect of removing the cap on banker's bonuses on wealth distribution.
  • The Government responded that lifting the bonus cap supports wealth creation, which funds public services.
  • Andrew Bridgen criticized the decision to remove the bonus cap while constituents struggle financially.

Topics (select to filter)

Questions & Answers

Q1 Marsha de Cordova Lab Battersea
Economy Taxation
Context

Debate around the removal of bonus caps for bankers and its impact on wealth distribution.

Question

What assessment he has made of the potential effect of removing the cap on banker's bonuses on the distribution of wealth. As some families in Battersea struggle to keep up with the rising cost of living, the Government have chosen to help bankers by removing the cap on their bonuses, while maintaining the cap on household social security. Despite soaring bills and growing inflation, the cap has remained stagnant since 2016, plunging hundreds of thousands of families into deep poverty.

Answer from Andrew Griffith

The hon. Lady has fully booked her place as a member of the anti-growth coalition. The Government are not afraid to be on the side of the people who create the wealth that funds our public services. In 1979 the top 1% of earners paid about 10% of income tax; they now pay 29.1%. That is three times as much.

Not addressed: The specific ask to change social security cap was not addressed

How: Anti-Growth Coalition, People Who Create The Wealth

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Q2 Marsha de Cordova Lab Battersea
Economy Taxation
Context

Discussion about lifting caps on banker's bonuses to increase competitiveness and tax revenue.

Question

Does my hon. Friend agree that scrapping the cap on bankers' bonuses will increase not only competitiveness, but tax receipts?

Answer from Andrew Griffith

Yes.

Not addressed: No substantive details or evidence provided for the claim

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Q3 Andrew Bridgen Con
Economy Taxation
Context

Debate around the policy decision to lift caps on banker's bonuses during a period of financial hardship for constituents.

Question

At a time when my constituents are struggling to make ends meet, struggling to put food on the table and struggling to put the heating on, the Government have decided that the way to increase growth in the economy is to lift the cap on bankers' bonuses. Not a single person or a single bank that I spoke to in the City as shadow City Minister said that this was the right policy to drive growth in the economy. Does the Minister really think that the policy will drive growth in the economy, or will we see yet another U-turn from his Government?

Answer from Andrew Griffith

I can assure the hon. Lady that this Government are going to grow the economy. We will grow the economy by releasing the burden, or the yoke, of taxation whether that is on ordinary people by cutting the basic rate of tax from 20p to 19p, or by today reversing the increase in national insurance, or by cutting the taxes on the businesses that she has been meeting—I welcome that—by reversing the increase in corporation tax next year.

Not addressed: The specific ask about economic growth from lifting bonus cap was not addressed

How: Releasing Burden Of Taxation, Cutting Taxes

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