Speaking on the BBC’s Andrew Marr Show on Sunday morning at the start of the Labour Conference in Brighton, Brown said “enough is enough” and that he would not stand by and allow a return to the “bad old days” of excessive bank bonuses.
Brown said: “I want to say to you today just as we will have a fiscal responsibility to deal with the public finances, we will come back and we will have a new Business and Financial Services Act as well. That will ban the old bonus systems and make it impossible for firms to be able to use them.
“It will also say that where there is bad behaviour, the Financial Services Authority will have the right to intervene. And where companies are not prepared to act in a way that is consistent with all these new proposals about the fair treatment of bonuses and remuneration, there will be penalties imposed on these companies.”
Brown said the measure would be brought to House of Commons in the next few weeks as part of the Queen’s November speech.
The Prime Minister said he had become “utterly convinced” that this was the way forward after talking to other G20 leaders in Pittsburgh last week.
He said: “We’re now going to do it. I’ve become utterly convinced as I’ve talked to my fellow colleagues at Pittsburgh just how far we all have to go because they’re all reporting to me that the banks are just anxious to return to the bad old days. Some of them are ready to announce big bonuses that are completely unacceptable.”
The announcement forms the first stage of Labour’s “fightback” to win voters from the Conservatives and Liberal Democrats.