Alistair Darling used his keynote speech on the economy at the Labour Party conference to promise to bring the big banks in Britain to heel.
To loud cheers, he told his audience in Brighton: “We intervened to stop the banks failing – not for the sake of the banks themselves, but because the alternative would have been an economy in paralysis and employment in freefall. Let me assure the country – and warn the banks – that there will be no return to business as usual for them.
“In the next few weeks, we will introduce legislation to end the reckless culture that put short-term profits before long-term success.”
He promised to end automatic annual bank bonuses and immediate payouts for top managament.
The Chancellor also spelled out the differences between Labour and the Conservatives ahead of the next general election. He said: As well as being a test of leadership for the government, the crisis was a test of judgement for the Conservatives. It was a test they failed at every turn.
“We are raising revenue by removing unfair pensions relief for higher earners and raising the top rate of tax for the very highest earners. It is right that those who earn the most should shoulder the biggest burden. And to make sure people can’t avoid paying their fair share, we are cracking down on offshore tax havens.”
Mr Darling said Labour would restore pensions releif for high earners while raising tax rates for the the highest earners. The choice, he said, is now between “a Labour government which believes passionately that front-line public services are vital to support everyone to meet their ambitions and a Tory Party which has reverted to type and is relishing the chance to swing the axe at the public services millions rely on.”
During the debate on the economy, speaker after speaker noted the disparity between the wages and pensions of the very rich and those of the lowest-paid workers.
Work and Pensions Secretary Yvette Cooper said: “Never again forget how close we came to catastrophe last year. And never forget how easy it would have been for governments to turn their backs, to retrench. That was what they did in the 1930s and for years working people paid the price. That was what the Tory Government did in the ’80s and for generations entire communities paid the price. And that is what David Cameron and George Osborne want us to do again.”
