Benn: business must give back to society

Hilary Benn, who has overtaken Alan Johnson as the favourite, told the Standard: "I think businesses should publish clear and accessible details of what they give to charity and they should be encouraged to compete to be the most generous."

The Overseas Development Secretary-said that companies should reveal whether they operate gift aid schemes for their staff, what links they are building with local schools, whether they offer work experience for people in local communities - and if they allow time for their staff to do volunteer charity work.

"I would say to those who are welloff: You have been really fortunate. What are you putting back? We have to change the culture and social expectation so - why not start with business in London?" he said.

Mr Benn also said politicians should not be afraid to talk about equality - a term sidelined during the Blair years.

He dismissed charges that his emphasis on equality was an "Old Labour" preoccupation, saying: "I think the mood is changing on this. No matter how well-off you are, we all have an interest in a more equal society. I don't accept there is a conflict between supporting business and supporting equality." He added that the "divided society" was particularly apparent in London.

"Someone born in Bethnal Green and Bow is, statistically, going to die sooner than someone in Chelsea. You just have to travel on the Tube to move from one extreme to the other.

"I don't think being concerned about inequality is limited to Labour. All sections of society should be concerned about these extremes."

But he ruled out punitive taxation for City bonuses or tax raids on non-domiciled wealthy residents and refused to back calls by fellow candidate Harriet Harman for a tax and income commission to examine the arguments for higher taxes.

"We don't need a commission. We need to get on with other things like the Surestart scheme which can really change things."

As another rival, Peter Hain, claimed that New Labour had neglected and disappointed its natural supporters, Mr Benn responded: "When people look at our progressive legacy they will take a different view.

"I remember when we first advertised teaching posts in Ealing when I was a councillor saying we welcomed application regardless of sexual orientat ion and the house practically fell down. I think these are profound social changes and New Labour has played a part in that."

But Mr Benn admitted that there has been a sense of alienation in the party at the end of the Blair years.

"The party feels it has been out on the street watching the Government at work and it has to be more involved," he said.

He favours city academies as a way of encouraging businesses to be more linked to education but issued a defiant defence of the record of London comprehensives saying: "It was a popular revolution. No areas that went comprehensive have voted to go back to grammars.

"If I had a badge saying 'Comprehensiveeducated and proud of it', I'd be wearing it."