This morning when asked if he wants a law to limit income, Jeremy Corbyn said: “I would like to see a maximum earnings limit”, adding “I would like there to be some kind of high earnings cap”. In his speech this afternoon he has massively watered down this rhetoric. Labour’s new policy only applies to companies awarded government contracts, and it will be a 20-1 ratio rather than an outright limit. For other firms Corbyn says:
“We could allow consumers to judge for themselves, with a government-backed kitemark for those companies that have agreed pay ratios between the pay of the highest and lowest earners with a recognised trade union.
We could ask for executive pay to be signed off by remuneration committees on which workers have a majority.
We could ensure higher earners pay their fair share by introducing a higher rate of income tax on the highest 5 percent or 1 percent of incomes.
We could offer lower rates of corporation tax for companies that don’t pay anyone more than a certain multiple of the pay of the lowest earner.”
Corbyn says these are four “options” Labour are considering. None of them is the national maximum earnings limit he was talking about this morning. That Corbyn relaunch in full: On the maximum wage law he has u-turned, on immigration he has u-turned on his u-turn of a u-turn. Going round in circles…