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High Pay Commission
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THINKPIECE
#59 Democracy & Terrorism
Poll shows huge majorities want action on high pay
A YouGov poll commissioned by Compass has demonstrated overwhelming public support for the government to take much bolder action on excessive pay. The results reveal that 83% of the public agree that excessive bonuses and executive pay fuelled excessive risk taking which played a significant role in causing the economic crash; whilst 63% support the establishment of a High Pay Commission.
In further support of the Compass call to take radical action on high pay:
- 78% agree that the growing gap between rich and poor is bad for our society
- 73% would support the government in imposing a new tax on all bonuses above £10,000 a year
- 68% support the government in imposing a new tax on major transactions by banks and other financial companies, to curb the bonus/risk culture, with the proceeds used for social causes
- 52% would be more likely to vote for a political party that promised at the next election to tax bonuses and major financial transactions, and to set up a High Pay Commission
The results are published after this week's Compass Summer Lecture in which the influential backbench Labour MP Jon Cruddas spelt out a route-map for Labour's renewal based on a social democratic policy programme which included bold ideas such as a High Pay Commission and a more equal distribution of income and wealth.
Last weekend the government performed a stunning and disappointing U-Turn on caps for banker's bonuses at the G20 meeting of finance ministers and these poll results will pile even more pressure on embattled Prime Minister Gordon Brown and his Chancellor Alistair Darling to take a much firmer stance on excessive pay.
Gavin Hayes General Secretary of Compass said: "This poll demonstrates a seismic shift across the political spectrum in attitudes to high pay and shows very clearly that on this crucial issue the British people don't just want rhetoric from politicians they demand concrete action. The government could start by immediately announcing plans to establish a High Pay Commission - they would be guaranteed huge public support for doing so."
Jon Cruddas MP said: "This poll has pulled down a major pillar of orthodox New Labour thinking, it is now clear that the electorate are not intensely relaxed about people getting filthy rich. It also shows that tackling excessive pay is electorally popular and the growing gap between rich and poor is a real public concern. Public anger over high pay and the City bonus culture demand the government take bold action. Establishing a High Pay Commission would enable the government to take action and instigate an evidence and fact based investigation into the effects of excessive pay on our economy and wider society."
Compass would like a High Pay Commission to be the main body of research into the broader impact of high pay on economic performance and society in Britain. It would provide extensive research and consultation; take written and oral evidence from a wide range of organisations; and engage on fact-finding visits throughout the UK to meet employers, employees and representative organisations. Due to the huge levels of public anger acknowledged in the poll results today it should also be open to real consultation with the wider public, and could use online tools to invite such input.
A High Pay Commission could then focus on three main things; to explore how high pay and remuneration have affected economic stability. To investigate the link between high pay and long term performance within companies and financial institutions. Finally and perhaps most importantly to explore the effects of high pay on society, in particular the growing pay gap which a staggering 78% of those polled thought was bad for society.
The issue of high pay is set to be the most popular issue at the Labour Party conference later this month in Brighton.
Compass will shortly be publishing a blueprint for how a High Pay Commission could work.
For further comment please call Gavin Hayes on 07900 195591 or Joe Cox on 07796 884487
Download full results (excel/xls)
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Comments
on 11 September 2009, 1:09:21 PM
It is important to tell a "good news" story that appeals to people's interests rather than nebulous concepts such as social justice. Please use the evidence from The Spirit Level by Wilkinson & Pickett - which can be accessed most easily at The Equality Trust - www.equalitytrust.org.uk. Apologies for the shameless plug involved here but it really is vital to keep the majority on our side once this spasm of aversion to greedy rich people has fizzled out.
on 10 September 2009, 10:41:01 PM
A great truth with many implications, Thomas. We live in a country in which central government has, with partial exceptions in some aspects of the administration of Scotland, Northern Ireland and Wales, become increasingly "plans down, targets down, dump down, dumb down". We want a police force which polices the streets effectively as we wish them to be policed, but central government/our political classes can't deliver because they want/need a police force they can control and, anyway, they don't really give a damn what we want. We want schools which meet the needs of our communities, not the latest pie-eyed fad, where sponsor's pay a few bob upfront today, get free sponsorship tomorrow, and screw up overall.
We want trains which run at the weekends without blimps due to a total failure of management; and hospitals which have enough beds to be able to run at less than 115% (yeah, and that figure is damn right) to be able to reduce the level of hospital induced infection; patients being tossed out of their beds and sent home without appropriate care and medical assistance because assisting recuperation is no longer a function of the modern NHS hospital; not to mention maternity services where the demand is such and the beds so few that woman end up being delivered on trollies and on the floor.
Oh, and we want an economy which doesn't collapse whenever the bankers manage to break their little casino simulation toys because the government chooses not to regulate their activities (or even to make the effort to understand both the activities and their probable consequences).
We want a more equal, certainly a less obviously unfair, society but, on the basis of our experience, the only people who can trust any Westminster government to act as they wish it to act are the bankers, the hedge fund artists, and the consultancy and accounting trolls. I think this is what is generally referred to as a systemic problem. No wonder they have well armed regional police forces all directed from the centre. And there was me thinking it was just to protect the rest of us from drug dealers, ticket touts and climate change rioters.
on 10 September 2009, 8:11:46 PM
However, we have to recognise that people's lack of trust in government is also an impediment to action on reducing inequality. The British Social Attitude survey found that in 1985 45% of people thought that it was government's responsibility to reduce income differences between rich and poor. By 2006 this had fallen to 25%.
It seems that people want less inequality but they do not necessarily trust (or wish?) the government to deliver this.
I hope that this point will be considered in Compass' forthcoming publication on the proposed High Pay Commission.
on 10 September 2009, 6:23:48 PM
Perhaps people are simply tired of the constant promotion of Cruddas and the single issue of HIgh Pay.
When is Cruddas going to reply ?
Whensi Cruddasoline being launched?
on 10 September 2009, 12:26:09 PM
There wer many other reasons
Labour will on the eve o f the election promise a HIgh Pay Comissin adn will conveniently forget al about it just after teh election. In the same way that they forgot about PR , about welfare reform etc
But as we know Labour will not win teh next election so the subjectis purely acadeic aifnot fanciful. BUt useful for talking up the chances of Cruddas as 'the leader of the LEft'(sic)
Can we knoow have the best lines for the funeral oration for the day after the election?
After all it is allways better tobe prepared.
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