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Page last updated at 08:49 GMT, Saturday, 7 January 2012

Chuka Umunna: 'We need a more responsible capitalism'


High pay is one issue the politicians of all main parties have decided they need to deal with this year.

Chuka Umunna says there has been a big "blame game" going on, with everyone blaming each other on the issue of high pay.

What we need, the shadow business secretary says, is a more responsible and better capitalism. When there are pay awards that pay no relation to performance, he adds, this undermines trust in the whole system.

One of the things that has not been talked about enough, he says, is the fact that high pay is bad for businesses because of "perverse pay structures".

The Labour MP concedes that there is not a "magic pill" to solve the problem but a variety of measures - increased transparency, simplified remuneration packages and the publication of pay ratios - would help create a better pay culture.

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