Miliband to urge new bank bonus tax

Labour leader and shadow chancellor to call for windfall tax on bankers’ bonuses to be repeated and for VAT rise on petrol to be reversed in order to help boost growth Ed Miliband, the Labour leader, will today urge the government to repeat last year’s bank bonus tax to fund help for the young unemployed and support for the faltering construction industry. Ahead of next week’s budget, he and Ed Balls, the shadow chancellor, will appeal to George Osborne to do more to bolster growth. At a press conference in Westminster, they will say that a repeat of the £3.5bn windfall tax on bankers’ bonuses would raise cash to promote growth and help hard-pressed families. They will detail specific proposals for tackling the “crisis” of youth unemployment and boost the construction industry, which has lost 27,000 jobs in the past year. Labour is also calling for the VAT rise to be reversed on petrol as prices soar over 130p per litre. It intends to force a Commons vote on the issue on Wednesday. Miliband is expected to say this morning: “We are under no illusions that at this stage the government will abandon their deficit reduction plan – they are too dug in for that. “But at least they should take some steps to deal with faltering growth in our economy – to start to establish a plan to create jobs in the private sector … to deal with the crisis of youth unemployment in our country and build the skills we need for the future. “The tests for next week’s budget are clear – growth and living standards. But the signs aren’t good that they will be met. The government should think again.” Yesterday, Balls urged the chancellor to provide “immediate relief” for motorists by reversing, on petrol purchases only, January’s rise in VAT from 17.5% to 20%. Speaking to Sky News, he called on Osborne to “act now”. “I think he should act immediately on VAT. This was an own goal and he didn’t have to do it,” Balls said. “In parliament on Wednesday we will be urging Conservative and Liberal Democrat MPs to join with us in voting in parliament to urge the chancellor to cut VAT on fuel now and give immediate relief to hauliers and motorists across the country.” Ed Miliband Ed Balls Executive pay and bonuses Petrol prices Motoring George Osborne Construction industry Unemployment guardian.co.uk

Posted by on March 14, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.