Labour MP Jonathan Reynolds was put on the spot this morning over Labour ruling out reinstating a cap on bonuses for bankers in an interview the Conservative Party has dubbed a “car crash”.
The Shadow Business Secretary defended Labour not bringing back the cap despite previously criticising the Government for axing it.
Host Kay Burley asked: “You’re saying now you won’t reinstate the ban on bankers’ bonuses. Only a few months ago the shadow chancellor was tweeting that the decision to scrap the cap amidst a cost of living crisis ‘tells you everything you need to know about this government’.
“Does it tell us everything we need to know about you flip-flopping?”
Mr Reynolds said: “Look we never pledged that we would bring it back. I stand by all of those comments.”
Ms Burley asked again: “Let me put it another way then you can’t wriggle out of it. Are you going to put the cap back?”
The Labour frontbencher said: “No we’re not. It was of its time, post-financial crisis, the reforms that were put in place around the stability of banks and other rules relating to bonuses, that is more important.
“Really all this has done is hasn’t really delivered what was originally intended. As a policy to deliver what the British economy needs it’s not a priority.”
Pressed on why Rachel Reeves made her original comments, he added: “I think when people’s energy bills and food prices are high, it’s kind of an odd decision for the Government to make.
“They are but that’s a different question to whether you reverse a decision the Government has made and bring it back.
“It’s not a priority. If I was here saying the way to get the economy to grow more, to put more money in people’s pockets, is to bring this back thar argument wouldn’t stand up to be honest.”
Ms Burley then challenged Mr Reynolds on Labour being “happy to cap child benefit but not bankers’ bonuses”.
He said: “I would not make that comparison. The point around this is it’s not about limiting.
“The bankers’ bonus policy was never about how much people were paid, it’s the structure. So basically what was previously a bonus went into basic pay. I just want to be clear it’s not about people saying bankers should earn more, that’s not our view.”
Responding to the interview, Chief Secretary to the Treasury, Laura Trott MP said: “On the same day Sir Keir Starmer is promising business he will provide stability, Labour are in chaos on their £28 billion spending policy.
“Jonathan Reynolds could not say how Labour would pay for their £28 billion a year spending spree because they do not have a plan. That will just mean thousands of pounds of higher taxes for working people.”
