Mahmood's Past Call for Banker Bonus Tax to Tackle Youth Unemployment Resurfaces
Shabana Mahmood, the front-runner to become Andy Burnham's Chancellor, previously advocated for a tax on banker bonuses to fund guaranteed starter jobs for long-term unemployed youth. In 2015, as shadow financial secretary, she supported a Labour bill imposing a 50% levy on discretionary bonuses over £25,000, with banks also paying a 50% tax on the same bonuses, potentially reaching an effective rate of 115%. Mahmood argued bonuses should reward exceptional performance, not failure, and aimed to restore fairness to banking. The article notes that banker bonuses have surged since the Conservative government scrapped the cap under Liz Truss, while youth unemployment has risen sharply since Labour took power in 2024. The Milburn review warned NEETs could reach 1.25 million within five years, costing the UK £125bn annually. Industry body UK Finance opposes new sector-specific taxes, warning they would harm competitiveness. Mahmood's office declined to comment.
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