Angry about bonuses? Here's how to claim back agency from the banks

By transferring your money to an ethical bank, you can make a change to the financial system.

By transferring your money to an ethical bank, you can make a change to the financial system.

A group of activists have been holding underground meetings in Old Street, London. They've been plotting the next big campaign to reform finance after OccupyLSX. I was invited to see what they were up to, and it looks like they've got funding, contacts and a sound strategy. Now that bankers' bonus season is finally upon us, they are set to launch.

The campaign is called Move Your Money. The clue is in the name. Imported from the US, activists are calling on the public to transfer their cash from large, casino banks to more ethical alternatives like mutuals, credit unions and ethical banks. Off the record they say they have some high profile endorsements, but we'll have to wait until the formal launch to find out names. They want a collective shift of assets from institutions that pay large bonuses, take huge gambles and make unethical investments to those that offer something better. Almost everyone has a bank account, so everyone has a stake.

The original campaign continues to send shivers down the backs of irresponsible bank managers in the US, as consumers keep moving their money from Wall Street to Main Street. Originally started by Ariana Huffington in 2009, a national Move Your Money Day led to some 40,000 new accounts being created last November 5th, according to the US Credit Union National Association. Meanwhile the campaign's video has got some 600,000 views and its website has twenty-five pages of press links.

A new holding website that went up earlier today confirms that this campaign is now coming to the UK. Activists say they have raised several thousand pounds from various undisclosed funders, enabling them to pay at least one campaigner to work on the project full-time. They plan to start revealing high profile supporters before they ask the public to transfer their cash during a "month of action" in March. We can expect high street stunts and public education events around the country.

There are at least three reasons why this is a highly strategic campaign.

First, it is wonderfully populist. It's a campaign that goes beyond left and right and -- given it's based on freedom of choice and information -- it's completely compatible with capitalism. It's not an anarchic call to bring down the banks or score political points, it's about education, personal responsibility and collective action.

UK Uncut and OccupyLSX have a reasonably good reputation, but they remain small groups who punched above their weight because of daring action and a hungry press. In contrast, this campaign will be judged on just how many people they can get to shift their money, forcing them to reach out beyond the usual suspects.

Second, it is tangible. Most people feel that they are living at the mercy of markets they cannot control. We've been told the banks are too big to fail, but politicians don't seem to be building a secure alternative. For many, the Vickers report doesn't go far enough. But this campaign gives people something they can do. By transferring your money, you can actually protect yourself as an individual, and reclaim your sense of agency.

Third, it is effective. Through a co-coordinated campaign, people aren't just protecting their own assets as individuals, but sending a message to banks and politicians as a collective. It might also lead the City to think a bit harder about bonus season. Move Your Money campaigners will be looking to establish themselves as the "go to" people in the media to get a reaction to these rewards. The more disproportionate bonuses are, the more support for this campaign is going to grow.

Watching politicians respond to this campaign will be interesting. Labour will be justifiably jittery about coming out against any particular banks after the misrepresentation of Ed Miliband's conference speech. But they should publicly and whole-heartedly support the principle of giving more information to consumers to move their money where they see fit.

The problem with OccupyLSX was that people and politicians didn't want to be seen as supporting a bunch of niche activists. If the Move Your Money campaign can become a truly popular movement, it will be harder to ignore. In fitting contrast to the financial system, the incentives of this campaign are truly well aligned.

Rowenna Davis is a journalist and author of Tangled up in Blue: Blue Labour and the Struggle for Labour's Soul, published by Ruskin Publishing at £8.99. She is also a Labour councillor.

Rowenna Davis is Labour PPC for Southampton Itchen and a councillor for Peckham

Photo: Getty Images
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The Fire Brigades Union reaffiliates to Labour - what does it mean?

Any union rejoining Labour will be welcomed by most in the party - but the impact on the party's internal politics will be smaller than you think.

The Fire Brigades Union (FBU) has voted to reaffiliate to the Labour party, in what is seen as a boost to Jeremy Corbyn. What does it mean for Labour’s internal politics?

Firstly, technically, the FBU has never affliated before as they are notionally part of the civil service - however, following the firefighters' strike in 2004, they decisively broke with Labour.

The main impact will be felt on the floor of Labour party conference. Although the FBU’s membership – at around 38,000 – is too small to have a material effect on the outcome of votes themselves, it will change the tenor of the motions put before party conference.

The FBU’s leadership is not only to the left of most unions in the Trades Union Congress (TUC), it is more inclined to bring motions relating to foreign affairs than other unions with similar politics (it is more internationalist in focus than, say, the PCS, another union that may affiliate due to Corbyn’s leadership). Motions on Israel/Palestine, the nuclear deterrent, and other issues, will find more support from FBU delegates than it has from other affiliated trade unions.

In terms of the balance of power between the affiliated unions themselves, the FBU’s re-entry into Labour politics is unlikely to be much of a gamechanger. Trade union positions, elected by trade union delegates at conference, are unlikely to be moved leftwards by the reaffiliation of the FBU. Unite, the GMB, Unison and Usdaw are all large enough to all-but-guarantee themselves a seat around the NEC. Community, a small centrist union, has already lost its place on the NEC in favour of the bakers’ union, which is more aligned to Tom Watson than Jeremy Corbyn.

Matt Wrack, the FBU’s General Secretary, will be a genuine ally to Corbyn and John McDonnell. Len McCluskey and Dave Prentis were both bounced into endorsing Corbyn by their executives and did so less than wholeheartedly. Tim Roache, the newly-elected General Secretary of the GMB, has publicly supported Corbyn but is seen as a more moderate voice at the TUC. Only Dave Ward of the Communication Workers’ Union, who lent staff and resources to both Corbyn’s campaign team and to the parliamentary staff of Corbyn and McDonnell, is truly on side.

The impact of reaffiliation may be felt more keenly in local parties. The FBU’s membership looks small in real terms compared Unite and Unison have memberships of over a million, while the GMB and Usdaw are around the half-a-million mark, but is much more impressive when you consider that there are just 48,000 firefighters in Britain. This may make them more likely to participate in internal elections than other affiliated trade unionists, just 60,000 of whom voted in the Labour leadership election in 2015. However, it is worth noting that it is statistically unlikely most firefighters are Corbynites - those that are will mostly have already joined themselves. The affiliation, while a morale boost for many in the Labour party, is unlikely to prove as significant to the direction of the party as the outcome of Unison’s general secretary election or the struggle for power at the top of Unite in 2018. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.