Alastair Darling announces new laws on banking bonuses

29 September 2009

British chancellor Alastair Darling has announced new laws to restrict banking bonuses in his speech at the Labour Party conference.

The Business and Financial Services Act is set to be introduced as legislation in the Queen's Speech in November.

Mr Darling said it would mean an end to automatic annual bonuses and immediate payouts to senior management figures.

"Let me assure the country - and warn the banks - that there will be no return to business as usual for them," he said.

The Chancellor said that Labour will also introduce the Fiscal Responsibility Act, a legally binding pledge to reduce the country's budget deficit.

He went on to attack the Conservatives, saying the Tories had failed the tests of the economic crisis and had a cuts-driven ideology.

His speech came one day after he told the Observer that the Labour cabinet did not believe they could win the next general election, due to be held in 2010.

By Asim Shah

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