A BANK WINDFALL TAX
We write with growing concern at the latest round of announcements on bank profits coupled with plans for excessive bonuses in the banking sector. We believe it is now time the government took decisive action.
Back in August we called for the establishment of a High Pay Commission, but given the bankers' continued irresponsible behaviour and the persistent problem of excessive pay in the financial sector the government should also now enact the special one off measure of a windfall tax on individual banker's bonuses or directly on the profits of the banks themselves.
With unemployment rising and the economy still contracting, any revenue raised from such taxation should be ring-fenced and used to fund a Green New Deal to create the 100,000's of new jobs desperately needed for the future.
In 1981 Mrs.Thatcher levied a windfall tax on High Street banks, justified on the grounds that increased interest rates caused by the recession led to substantial unearned profits. In 2009, as a direct result of irresponsible behaviour in the banking sector the biggest government intervention in financial markets was required. A direct result of the worst economic catastrophe since the 1930's has once again been substantial unearned profits for banks.
In the longer-term, in order to address the institutionalised culture of excessive pay in The City, we urge the government to think again about the idea of establishing a High Pay Commission - a public enquiry that would hold open hearings into the effects of high pay and bonuses on our economy and on wider society. It is time to bring all of the arguments, all of the facts and all of the evidence into the light of day.
Doing nothing is no longer an option, the British people demand action.
Signed:
1. Aditya Chakrabortty, Economics Leader Writer, the Guardian
2. Andrew Simms, new economics foundation
3. Ann Pettifor,
4. Chuka Umunna, Labour PPC
5. Clifford Singer, The Other Taxpayer's Alliance
6. Cllr Jenny Jones, London Assembly Member, Green Party
7. Colin Hines, Convener of the Green New Deal Group
8. Dai Davies, Independent MP
9. David Byrne, Professor of Sociology and Social Policy, University of Durham
10. Derek Wyatt, Labour MP
11. Dr Adam Leaver, Manchester Business School
12. Dr David Alderson, Senior Lecturer, University of Manchester
13. Dr Eryl Price-Davies, Principal Lecturer, Thames Valley University
14. Dr Martin Parker, University of Leicester School of Management
15. Duncan Weldon, economist
16. Ed Matthew, Friends of the Earth
17. Gavin Hayes, Compass General Secretary
18. Hilary Cottam, Participle
19. Howard Reed, Director, Landman Economics
20. Ismail Erturk, Senior Lecturer in Banking, Manchester Business School
21. Jo Littler, Senior Lecturer, Middlesex University
22. John Austin MP
23. Jon Cruddas, Labour MP
24. Karel Williams, Professor of Accounting and Political Economy, University of Manchester
25. Kate Green, Child Poverty Action Group
26. Ken Livingstone
27. Lord Trevor Smith
28. Lynne Jones, Labour MP
29. Michael Moran, University of Manchester
30. Neal Lawson, Compass Chair
31. Nick Isles, Managing Director, Corporate Agenda
32. Paddy Tipping MP
33. Pat Devine, University of Manchester
34. Paul Holmes, Liberal Democrat MP
35. Peter Tatchell, Human Rights Campaigner
36. Polly Toynbee, The Guardian
37. Prem Sikka, Professor of Accounting, University of Essex
38. Priscilla Alderson, University of London
39. Professor Christine Cooper, University of Strathclyde Business School
40. Professor George Irvin, University of London, SOAS
41. Professor Gregor Gall, Professor of Industrial Relations, University of Hertfordshire
42. Professor Hugh Willmott, Cardiff University Business School
43. Professor Jonathan Rutherford, Middlesex University
44. Professor Kaldor, London School of Economics
45. Professor Malcolm Sawyer, Leeds University Business School
46. Professor Peter Case, Bristol Business School
47. Professor Richard Wilkinson, Equality Trust
48. Professor Ruth Lister CBE, FBA, Professor of Social Policy, Loughborough University
49. Professor Stefano Harney, Queen Mary, University of London School of Business and Management
50. Richard Murphy, Tax Research LLP
51. Richard Scorer, Labour PPC, Hazel Grove
52. Rob Macgregor, Unite National Officer, Finance and Legal Sector
53. Roger Levett, Author
54. Sam Tarry, Young Labour Chair
55. Stephen Linstead York University Management School
56. Stewart Lansley, economic journalist
57. Sukhdev Johal, Royal Holloway School of Management, University of London
58. Sunny Hundal, Liberal Conspiracy
59. Tony Juniper, Green Party Candidate for Cambridge
60. Tony Robinson
61. Tony Woodley - Joint General Secretary, UNITE
62. Will Straw, Editor, Left Foot Forward