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Fatcat firms should be banned from paying dividends to their shareholders unless they pay staff the living wage, Jeremy Corbyn will say today.

In his first major speech on inequality, the Labour leader will also propose ‘pay ratios’ to close the huge gaps between the best and worst-paid employees in firms.

It follows damning figures from the High Pay Centre which show bosses of major firms are now paid approximately 183 times as much as the average UK worker.

“Of the G7 nations, only the US has greater income inequality than the UK,” Mr Corbyn will say.

“Pay inequality on this scale is neither necessary nor inevitable.

“Too much of the proceeds of growth have accumulated to those at the top.”

The speech to the Fabian Society is designed to get Mr Corbyn back on the front foot following his chaotic reshuffle and internal rows over his stances on national security and Trident.



Mr Corbyn will make clear none of the proposals are yet set in stone as Labour policy, but are “under discussion” as part of a new approach to the UK economy.

“One proposal is pay ratios between top and bottom, so that the rewards don’t just accrue to those at the top,” he will say.

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“Another proposal would be to bar or restrict companies from distributing dividends until they pay all their workers the living wage.

“Only profitable employers will be paying dividends. If they depend on cheap labour for those profits then I think there is a question over whether that is a business model to which we should be turning a blind eye.”