Darling Cracks Down On Banker Bonuses

The Chancellor of the Exchequer Alistair Darling is set to crack down on the banker bonus culture in a key speech to the Labour Party's annual conference later.

Darling is weeks away from proposing new laws with higher capital requirements on banks with pay policies that regulators deem "too risky".

Acting alongside French Finance Minister Christine Lagarde the chancellor wants the guidelines agreed at last week's G20 conference in Pittsburgh to be implemented globally.

Speaking at the Brighton conference he will say: "Within months, the country faces a big choice.

"A choice not just about who's in government but about values that will shape our country and the opportunities for our people. A choice that will affect every area of our lives, every aspect of our future," he said.

"Let me assure the country - and warn the banks - that there will be no return to the business as usual for them. So in the next few weeks we will introduce legislation to end the reckless culture that puts short-term profits over long-term success."

With the next election due by June support for Labour is tied with the Liberal Democrats.

Beginning the conference Prime Minister Gordon Brown said: "We will not win every seat in the general election - but we will win many that people think we will not win."

The PM said Labour face "the fight of our lives" but dismissed challenges to his leadership and questions over his health, predicting voters will return back to the party.

Lord Mandelson said the party had to show it was "up for the fight".

The Business Secretary believes voters will be offered a wider choice than at any election for a generation.

He spoke of a "chasm" between Labour and Conservative policies on the economy, Labour are committed to protecting frontline public services within major spending constraints, while the opposition would see the economic crisis as an opportunity to cut services and reduce the state.

He said: "I would - and I think a lot of people in the country, when they reflect on it as well - rather have a man who knows his own mind, grasps the big picture and sticks to his guns, rather than a shallow flibbertigibbet who hasn't had the guts to take on his own party and drive through meaningful change in the Conservative Party and wouldn't be able to do so in the country as a whole."

(GK/BMcC)