Eagle demands action on executive pay

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The shadow leader of the Commons has called on the government to curb soaring boardroom pay.

At the business question today Angela Eagle said while nearly one million young people are unemployed, "one small group of people is doing very well".

She called for action after it was revealed that executives at Britain's biggest companies received an "eye-watering" average pay increase of 49 per cent this year.

Eagle said government must act otherwise "the chancellor's preposterous claim that we are all in this together" won't be taken seriously.

She also claimed George Osborne's decision "to cut too far and too fast" was a factor in "the slowest recovery in 100 years" and asked when he will revise his forecasts for growth and borrowing.

Commons leader Sir George Young said that the OBR and not the chancellor is responsible for economic forecasts.

He told MPs the next report is due on November 29, when George Osborne will make his autumn statement.

He reminded Eagle that youth unemployment rose 40 per cent under the Labour government at a time when the economy was stronger.

"She has little to lecture us about," he told the House.

On executive pay, Sir George said there is "an unsustainable disconnect" between large companies and the public on the issue.

He said ministers are looking at measures such as the membership of renumeration committees and binding shareholder votes on executive pay, but "it is up to shareholders rather than the government to determine executive pay".

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