Ken Livingstone backs Jeremy Corbyn wage plans: 'We need to stop the mega-rich buying yachts'

'The highest earners are bright, but they aren't transforming our economy', says Ken Livingstone

Jeremy Corbyn has called for a maximum wage cap

Tuesday, January 10, 2017

Ken Livingstone has backed Jeremy Corbyn's plans to limit the earnings of the highest-paid, saying we need to stop "the super-rich elite" buying yachts and investing in "dodgy financial deals."

This morning Corbyn called for wage caps to address inequality, before appearing to moderate his stance by saying he was more interested in pay ratios. 

Livingstone, the former mayor of London, told Sam Delaney: “If money’s spread fairly, ordinary people go and spend it in local shops, it helps create jobs and all of that.

“If it’s all going to a small super rich elite, they just go and buy another yacht in Monaco or they invest it in some dodgy financial deal in America or Panama.

“A lot of these people, they’re bright, but they’re not absolutely transforming for our economy," he continued. "You can either have a cap or a fairer tax system."

However, City Editor for the Daily Mail Alex Brummer believes: “The solution of putting a cap on pay is absolutely madness, and all it would do is drive talented people overseas.

"I do think that the relationship between performance and pay is not very clear at the moment," he said, however. "Give shareholders and workers and all the stakeholders in our big public companies the power to control some of those ill-thought out wage packets."

Listen to the full audio above