To ask the Chancellor of the Exchequer what representations he has received on large bonuses being paid to people employed in the financial services industry. (111837)

Treasury Ministers and officials receive representations from a wide range of organisations and individuals in the public and private sectors as part of the process of policy development and delivery. As was the case with previous Administrations, it is not the Government’s practice to provide details of all such representations.

To ask the Chancellor of the Exchequer what data his Department collects on trends in the levels of remuneration of people employed in the financial services industry in London compared with other (a) sectors and (b) regions of the UK. (111838)

The Office for National Statistics collects data on earnings in the financial sector and all other major industry sectors as part of its annual survey of hours and earnings. The survey includes data for each region of the UK and is published on an annual, weekly and hourly basis, with separate data for basic and overtime pay.

To ask the Chancellor of the Exchequer what recent discussions he has had with the Bank of England on the potential effects of large bonus payments to people employed in the financial services industry on levels of inflation. (111839)

The Chancellor has regular discussions with the Governor of the Bank of England and other MPC members regarding a wide range of economic and financial issues. It is for employers to decide pay rates in the light of what is necessary to recruit, retain and motivate labour in the market conditions in which they operate. Excessive pay awards increase inflationary pressure, and wage pressures are one of the factors considered by the Monetary Policy Committee of the Bank of England when setting interest rates. Excessive pay deals ultimately threaten employment.

To ask the Chancellor of the Exchequer what assessment he has made of the effect of bonuses in excess of £100,000 on retail prices. (111840)

It is for employers to decide pay rates in the light of what is necessary to recruit, retain and motivate labour in the market conditions in which they operate. Excessive pay awards increase inflationary pressure, and wage pressures are one of the factors considered by the Monetary Policy Committee of the Bank of England when setting interest rates. Excessive pay deals ultimately threaten employment.

To ask the Chancellor of the Exchequer what assessment he has made of the economic effect on the regions of the City of London and the financial markets. (111949)

The Government have set out their assessment of the importance of the City of London and the financial markets to the UK economy as a whole in “Financial services in London: Global opportunities and challenges” (March 2006), and “The UK financial services sector: Rising to the challenges and opportunities of globalisation”, (March 2005), including for example through connections between London and financial centres in Leeds and Edinburgh.