Response to Liberal Democrat five-point plan on banker bonuses

13 April 2010

Baroness Jo Valentine is chief executive of business group London First. In response to the press launch of the Liberal Democrat five point plan on banker bonuses, she said:

“There is understandable public appetite for tougher regulation applying to banks, given the recent crisis. But we mustn’t pretend that the financial services sector contribution to the economy, to employment and to the Exchequer don’t matter. Even in 2009 – hardly a vintage year – the sector contributed over £25bn in corporation and payroll taxes.

“We must regulate to maintain this economic contribution and to reduce the risk of instability, not to seek revenge for the mistakes of a few. Neither should we micromanage the banks with over-prescriptive rules.

“Over a million jobs depend on the sector, many of them in European offices of foreign-owned banks, who could walk away from London and the UK, if the political, economic and regulatory environment is more attractive elsewhere. We should be striving to attract more investment with a stable and risk-proportionate regulatory framework.

“Banker bashing has served the politicians well for the last two years. They should now be seeking to work with business to forge a way forward which supports economic growth in financial services and other sectors.”