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Darling tells banks: Cut bonuses Labour should be proud - Darling
(20 minutes later)
Alistair Darling has asked bankers to crack down immediately on bonuses in a key speech to Labour's conference. Alistair Darling has said Labour should be "proud" of the way it has handled the economic crisis and urged it to take its "good story" to the country.
The chancellor said he would bring in new laws within weeks to ensure that bonuses are not paid automatically but are based on long-term performance. The chancellor told Labour conference delegates Gordon Brown's leadership had prevented a global recession from turning into a depression.
He also said Gordon Brown's leadership has prevented a global recession from turning into a depression. He also promised new laws within weeks to crack down on bank bonuses driven by "greed and recklessness".
Labour is using its week in Brighton to launch a fight back against the Tories, claiming it is now the "underdog". He said the Tories' approach to the economy was "downright dangerous".
Mr Darling, currently addressing delegates, said he was hopeful countries around the world would push the guidelines agreed at last week's G20 conference in Pittsburgh. Bank warning
Labour is hoping its autumn conference, the last before a general election, will help it to fight back against the Tories.
Mr Darling said the party had a lot to "be proud" of its handling of what he said was "an unprecedented" economic crisis.
Addressing bank bonuses, he said he would bring in new laws within weeks to ensure that rewards were not paid automatically but were tied to long-term performance.
"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," 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," he said.
The "greed and recklessness" shown by banks over the past two years must never again be allowed to "endanger the global economy and the lives of millions of people", he added.The "greed and recklessness" shown by banks over the past two years must never again be allowed to "endanger the global economy and the lives of millions of people", he added.
Mr Darling said it was "too early" to say that the economic recovery was underway and stressed that it was vital that Labour continued to support the economy.Mr Darling said it was "too early" to say that the economic recovery was underway and stressed that it was vital that Labour continued to support the economy.
"We can't sit back and relax. There are many business and families struggling to keep their heads above water.""We can't sit back and relax. There are many business and families struggling to keep their heads above water."
Mr Darling said he welcomed a "mature debate" on the need for measures to reduce debt and said spending would have to be "tighter" in the years ahead.Mr Darling said he welcomed a "mature debate" on the need for measures to reduce debt and said spending would have to be "tighter" in the years ahead.
But he said the Tories had "failed every test" over the economy over the past two years and would pursue an ideologically-driven approach to cuts. He said new legislation would require the government to demonstrate how the deficit was being reduced every year.
"We must keep the public finances on a sustainable path because the long-term health of our economy depends on it."
But he said the Tories had "failed every test" over the economy over the past two years and would pursue an ideologically-driven approach to cutting spending.
Describing the Conservative approach as "wrong, naive and downright dangerous".
'Policy chasm''Policy chasm'
He said: "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: "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."
Prime Minister Gordon Brown began what is the final Labour conference before a general election by telling delegates on Sunday: "We will not win every seat in the general election - but we will win many that people think we will not win."Prime Minister Gordon Brown began what is the final Labour conference before a general election by telling delegates on Sunday: "We will not win every seat in the general election - but we will win many that people think we will not win."
Cabinet ministers lined up at fringe meetings on Sunday evening to urge the party to fight for victory after Mr Darling said the party had "lost the will to live".Cabinet ministers lined up at fringe meetings on Sunday evening to urge the party to fight for victory after Mr Darling said the party had "lost the will to live".
MONDAY'S CONFERENCE HIGHLIGHTS 09:30: Speech by Scottish Secretary Jim Murphy09:50: Welfare and economy debate12:00: Speech by Chancellor Alistair Darling14:15: Speech by Business Secretary Lord Mandelson15:20: Debate on the environment, energy and transport17:00: Debate on the 2012 OlympicsMONDAY'S CONFERENCE HIGHLIGHTS 09:30: Speech by Scottish Secretary Jim Murphy09:50: Welfare and economy debate12:00: Speech by Chancellor Alistair Darling14:15: Speech by Business Secretary Lord Mandelson15:20: Debate on the environment, energy and transport17:00: Debate on the 2012 Olympics
Justice Secretary Jack Straw said the party faced the "mother and father" of battles, while Lord Mandelson said the party had to show it was "up for the fight".Justice Secretary Jack Straw said the party faced the "mother and father" of battles, while Lord Mandelson said the party had to show it was "up for the fight".
The business secretary told the BBC there was a "chasm" between Labour and Conservative policies on the economy and it was up to the government to make the public see this.The business secretary told the BBC there was a "chasm" between Labour and Conservative policies on the economy and it was up to the government to make the public see this.
While Labour was committed to protecting frontline public services despite tough spending constraints, he said the opposition would "use" the financial crisis as an opportunity to cut services and reduce the size of the state.While Labour was committed to protecting frontline public services despite tough spending constraints, he said the opposition would "use" the financial crisis as an opportunity to cut services and reduce the size of the state.
"Let's build on our achievements but let's fix what is still wrong in our economy and our society," he said."Let's build on our achievements but let's fix what is still wrong in our economy and our society," he said.
'Personal intrusiveness''Personal intrusiveness'
The first day of conference saw a row about Mr Brown's appearance on BBC One's Andrew Marr programme, where he was asked about his health.The first day of conference saw a row about Mr Brown's appearance on BBC One's Andrew Marr programme, where he was asked about his health.
In the exchanges, Mr Marr asked about Westminster rumours he might use concerns about his health as a reason for stepping down as prime minister ahead of a general election.In the exchanges, Mr Marr asked about Westminster rumours he might use concerns about his health as a reason for stepping down as prime minister ahead of a general election.
He told Mr Brown he wanted to ask about "something everybody has been talking about in the Westminster village... A lot of people in this country use prescription painkillers and pills to help them get through. Are you one of them?"He told Mr Brown he wanted to ask about "something everybody has been talking about in the Westminster village... A lot of people in this country use prescription painkillers and pills to help them get through. Are you one of them?"
The prime minister replied: "No. I think this is the sort of questioning which is all too often entering the lexicon of British politics."The prime minister replied: "No. I think this is the sort of questioning which is all too often entering the lexicon of British politics."
FROM THE TODAY PROGRAMME More from Today programmeFROM THE TODAY PROGRAMME More from Today programme
And he denied his sight was deteriorating - something he was asked about last week on US television.And he denied his sight was deteriorating - something he was asked about last week on US television.
Mr Brown lost the sight in one eye in a rugby accident as a teenager and suffers reduced vision in the other eye, but he said he had recently undergone an annual check-up which showed no deterioration in the vision of his good eye.Mr Brown lost the sight in one eye in a rugby accident as a teenager and suffers reduced vision in the other eye, but he said he had recently undergone an annual check-up which showed no deterioration in the vision of his good eye.
When Andrew Marr asked again about the issue of painkiller use, Mr Brown said: "I've already answered that question."When Andrew Marr asked again about the issue of painkiller use, Mr Brown said: "I've already answered that question."
Lord Mandelson later criticised the "degree of personal intrusiveness" in the interview and said he did not have "the foggiest idea" what Andrew Marr had been talking about.Lord Mandelson later criticised the "degree of personal intrusiveness" in the interview and said he did not have "the foggiest idea" what Andrew Marr had been talking about.
Alastair Campbell, Labour's former director of communications and strategy, told BBC Radio 5 live: "I think people were genuinely really quite shocked that Andrew Marr, on a mainstream BBC programme, sees it as his job now to float rumours that are flying round the internet."Alastair Campbell, Labour's former director of communications and strategy, told BBC Radio 5 live: "I think people were genuinely really quite shocked that Andrew Marr, on a mainstream BBC programme, sees it as his job now to float rumours that are flying round the internet."