The Crewe branch of the Co-operative Bank. Photograph: Getty Images.
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The Co-operative needs to set a higher standard

An open letter to outgoing chief executive Euan Sutherland.

Dear Mr Sutherland,

Congratulations on your resignation! If you do the honourable thing and leave without taking a pay-off, you could save Co-operative members like myself £3.6m in your salary alone over night - an impressively efficient move. 

I know your chair said that your pay-out was what other "comparable companies" offer, but really, most people join the Co-op because it is not a comparable company. At a time when the British public have spent billions bailing out mainstream banks, we kind of wanted something... different?

I know you were also fuming with how your pay was leaked and by the public outrage that has followed - particularly from Co-op members and candidates like myself - but you of all people should know that members are supposed to participate and hold executives to higher standards. That again is kind of the point of being a Co-operative. Plus, we were victorious. It seems that, unlike other banks, members have actually succeeded in removing you when you tried to get paid millions without actually delivering any results. 

Yes, the Co-op needs reform. But our bank didn't fail because it didn't pay its top people enough - it failed because it wasn't co-operative and accountable enough. More transparency and power to members would have dislodged the appalling Mr Flowers long ago. A bigger Co-operative movement would allow a greater and more talented range of board members to choose from. Better worker representation as well as customer representation might help find alternatives to laying off 5,000 staff as in your plan. Similarly, if you'd asked us about boardroom pay in this upcoming survey of yours, and listened, we might not be in this pretty pickle. 

Right now, the Co-op bank - just like all banks and the rest of the country - has a choice. Are we going to carry on with business as usual, handing out huge cheques regardless of success until the next crash, or are we going to fundamentally reform our banking system? It's something George Osborne should think about in the Budget next week, but don't worry, he won't mention it. 

But Co-operators will. Because "The Co-op" is more than just a nice brand. Its a set of ideas and values. We believe in creating a robust and local banking system that is accountable to local people. We believe that participation and shared ownership, not big bonuses, is what leads to better banking. Co-operators work together to be radical, not make isolated decisions to preserve hierarchies between the elites and the rest. We believe it's a time for boldness, not swallowing what failed in 2008.

Of course if you don't believe any of this, then maybe the Co-op isn't for you anyway. But don't worry - sadly you'll still find plenty of banks where you'll fit right in. 

Sincerely,

Rowenna Davis 

Co-operative Labour Candidate for Southampton Itchen

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

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Will Jeremy Corbyn stand down if Labour loses the general election?

Defeat at the polls might not be the end of Corbyn’s leadership.

The latest polls suggest that Labour is headed for heavy defeat in the June general election. Usually a general election loss would be the trigger for a leader to quit: Michael Foot, Gordon Brown and Ed Miliband all stood down after their first defeat, although Neil Kinnock saw out two losses before resigning in 1992.

It’s possible, if unlikely, that Corbyn could become prime minister. If that prospect doesn’t materialise, however, the question is: will Corbyn follow the majority of his predecessors and resign, or will he hang on in office?

Will Corbyn stand down? The rules

There is no formal process for the parliamentary Labour party to oust its leader, as it discovered in the 2016 leadership challenge. Even after a majority of his MPs had voted no confidence in him, Corbyn stayed on, ultimately winning his second leadership contest after it was decided that the current leader should be automatically included on the ballot.

This year’s conference will vote on to reform the leadership selection process that would make it easier for a left-wing candidate to get on the ballot (nicknamed the “McDonnell amendment” by centrists): Corbyn could be waiting for this motion to pass before he resigns.

Will Corbyn stand down? The membership

Corbyn’s support in the membership is still strong. Without an equally compelling candidate to put before the party, Corbyn’s opponents in the PLP are unlikely to initiate another leadership battle they’re likely to lose.

That said, a general election loss could change that. Polling from March suggests that half of Labour members wanted Corbyn to stand down either immediately or before the general election.

Will Corbyn stand down? The rumours

Sources close to Corbyn have said that he might not stand down, even if he leads Labour to a crushing defeat this June. They mention Kinnock’s survival after the 1987 general election as a precedent (although at the 1987 election, Labour did gain seats).

Will Corbyn stand down? The verdict

Given his struggles to manage his own MPs and the example of other leaders, it would be remarkable if Corbyn did not stand down should Labour lose the general election. However, staying on after a vote of no-confidence in 2016 was also remarkable, and the mooted changes to the leadership election process give him a reason to hold on until September in order to secure a left-wing succession.

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