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

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Vince Cable will need something snappier than a graduate tax to escape tuition fees

Perhaps he's placing his hopes in the “Anti Brexit People’s Liberation Front.” 

“We took power, and we got crushed,” Tim Farron said in what would turn out to be his final Autumn conference as Liberal Democrat leader, before hastening on to talk about Brexit and the need for a strong opposition.

A year and a snap election later, Vince Cable, the Lib Dem warhorse-turned-leader and the former Coalition business secretary, had plenty of cracks about Brexit.

He called for a second referendum – or what he dubbed a “first referendum on the facts” – and joked that he was “half prepared for a spell in a cell with Supreme Court judges, Gina Miller, Ken Clarke, and the governors of the BBC” for suggesting it".

Lib Dems, he suggested, were the “political adults” in the room, while Labour sat on the fence. Unlike Farron, however, he did not rule out the idea of working with Jeremy Corbyn, and urged "grown ups" in other parties to put aside their differences. “Jeremy – join us in the Anti Brexit People’s Liberation Front,” he said. The Lib Dems had been right on Iraq, and would be proved right on Brexit, he added. 

But unlike Farron, Cable revisited his party’s time in power.

“In government, we did a lot of good and we stopped a lot of bad,” he told conference. “Don’t let the Tories tell you that they lifted millions of low-earners out of income tax. We did… But we have paid a very high political price.”

Cable paid the price himself, when he lost his Twickenham seat in 2015, and saw his former Coalition colleague Nick Clegg turfed out of student-heavy Sheffield Hallam. However much the Lib Dems might wish it away, the tuition fees debate is here to stay, aided by some canny Labour manoeuvring, and no amount of opposition to Brexit will hide it.

“There is an elephant in the room,” the newly re-established MP for Twickenham said in his speech. “Debt – specifically student debt.” He defended the policy (he chose to vote for it in 2010, rather than abstain) for making sure universities were properly funded, but added: “Just because the system operates like a tax, we cannot escape the fact it isn’t seen as one.” He is reviewing options for the future, including a graduate tax. But students are unlikely to be cheering for a graduate tax when Labour is pledging to scrap tuition fees altogether.

There lies Cable’s challenge. Farron may have stepped down a week after the election declaring himself “torn” between religion and party, but if he had stayed, he would have had to face the fact that voters were happier to nibble Labour’s Brexit fudge (with lashings of free tuition fees), than choose a party on pure Remain principles alone.

“We are not a single-issue party…we’re not Ukip in reverse,” Cable said. “I see our future as a party of government.” In which case, the onus is on him to come up with something more inspiring than a graduate tax.

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.