Labour will today urge Ministers to toughen up banking reforms with a series of amendments in the House of Commons to the Government’s Banking Reform Bill.

Ministers lost a crucial vote in the House of Lords last month on a Labour amendment calling for a tough annually-renewed licensing regime for senior bankers.

The Government has in response tabled a new amendment on professional standards, but it proposes a much weaker regime run by the banks themselves rather than being properly independent, and with no Code of Conduct for senior bankers. Labour will therefore defend its successful amendment from the House of Lords in the House of Commons today.

Labour will also call for caps on the total cost of payday loans to be introduced from October 2014 rather than waiting until 2015, following the Chancellor’s u-turn on this issue last month.

And Labour will press the government to amend rules on remuneration so that they reflect the conduct of bankers and prioritise long-term performance.

Cathy Jamieson, Labour’s Shadow Financial Secretary to the Treasury, said:

“After a series of embarrassing u-turns and defeats on banking reform, it’s now time for the Chancellor to go further.

“Despite last month’s defeat in the House of Lords, the Government’s latest proposal on professional standards for bankers remains weak. What we need is the tougher regime that Labour proposed with a proper code of conduct that senior bankers will have to adhere to or face being struck off.

“And with families facing a cost-of-living crisis we should start capping the cost of payday loans before next Christmas rather than waiting until 2015.”