Chris Leslie MP, Labour’s Shadow Chief Secretary to the Treasury, responding to the Government’s defeat in the House of Lords on a tough licensing regime for senior bankers, said: 

“This is a turning out to be a good week for banking reform, but a disastrous week for George Osborne. After being forced to climb down on capping payday loan costs and leverage ratios for banks, the Chancellor has now been defeated in the House of Lords.

“Labour’s successful amendment, which the Government has resisted three times, calls for a tough licensing regime for senior bankers which would have to be renewed each year. As the revelations of the last week show, an annual health check like this could help to spot problems and ring alarm bells. 

“This is a Chancellor who always has to be pushed into doing the right thing. Why has George Osborne consistently opposed Labour’s proposal? After tonight’s embarrassing defeat, the Chancellor should now do another u-turn and accept this amendment when this Bill returns to the House of Commons.”