Labour have re-announced that they are planning to raise a tax on Bankers Bonuses to pay for something
1) Reversing Child Benefit savings
In October 2010, Soon after Ed Miliband was elected leader, he told the BBC Politics Show that he wanted to give Millionares Child Benefit by reversing the Coalitions Child Benefits savings
"If we can get more for example from the banks in a higher bank levy, to protect ordinary families, like on Child Benefit…we should do so"
2) Growth in the economy
Labour pledged a Bankers Bonus tax to "provide money to support growth in the economy" on January 10th 2011
3) Build Houses and Cut VAT
On March 14th 2011 Labour decided that supporting growth in the economy was a bit vague and decided that all the bankers money should boost the construction industry and cut VAT
4) Build Houses and create Jobs
By June 2011 Ed Balls probably thought cutting VAT was a bit naff, so he announced that instead Labour would use Bankers Bonuses to build houses and create youth jobs instead
Worryingly, Ed Balls appears to have been persuaded of this by watching Britain's Got Talent...
5) Scrap Bankers Bonuses
In February 2012 Labour decided that Bankers shouldn't get bonus's after Royal Bank of Scotland chief executive Stephen Hester decided to waive his near £1m payout.
Would it be popular? Check Would it Change the city's attitude? Maybe,
Would Labour be able to pay for anything from Bankers bonus's? erm.......
In a speech to the Co-operative Group later in July 2012 Miliband blasted Bankers Bonuses
"We have a bonus culture in our banks that rewards short-term transactions not long-term wealth creation."
This ended well
6) More money for the regional Growth Fund
Labour also thought they could squeeze in extra funding for regions because £200 million extra funding isn't a lot of money but does sound like a lot of money and we probably could pay for it out of Bankers Bonuses alongside, Child benefit, Houses, Jobs and A VAT cut,
7) A guaranteed job for young people out of work
Labour decided sometime in early 2013 that the thing they would really like Bankers to focus on paying for, instead of fast cars and big yachts, was jobs.
No idea what sort of job but a convincing 'Jobs Guarantee' sounds great especially when the Coalition are only reducing unemployment by record amounts
8) Free childcare places
Turns out Labour weren't that keen on Youth Jobs, by September 2013 they wrote another letter to the Banks:
"Dear Bankers, we would now like you to pay for an increase in free childcare places for 3 and 4 years olds preety please" Ed Miliband, 3 a half years old as Labour leader
9) Back to Jobs
Coming up to date on February 9th 2014, Labour's Rachel Reeves decided that Bankers should actually fund 56,000 jobs for young people
The Mirror noted that "critics say Labour have already pledged to use money from a bonus tax for other things" which is obviously a total lie
10) Jobs guarantee “promise limited to a year”
Ten days later Labour announces that the Job's guarantee, would cover an extra 170,000 people and despite being Labour policy in one form or another for 3 years, was only on offer for a limited period of time
A bit like their policies on a bank bonus tax
11) Jobs guarantee "will last the whole parliament”
That was until today, when Labour triumphantly announced that a policy that was limited to a year will now be in place for a whole Parliament - Hurrah!
Better yet - it would be paid for by the untapped well of a tax on bankers' bonuses - Fantastic!
Now, its not for me to say that Labour are making it up as they go along on the back of an envelope, and I wouldn't dare claim they were a miserable shower....
But, if labour had a coherent economic policy for rescuing the economy from the mess they made this sort of muddle probably wouldn't happen
I mean, I know Bankers are rich and they pay themselves unjustifiably huge amounts of money but:
Q) Could taxing diminishing Bankers Bonuses really rescue the economy, reverse tax rises, pay for hundreds of thousands of jobs, free childcare, provide money to fund new business, build houses and reverse child benefit savings:
i) At an estimated cost of 30 Billion Bank of England Pounds Per year?
ii) Whilst cutting bankers Bonus's?
A) It seems Labour are digging deeper into a gaping policy hole
Still, it could be worse....
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