It’s fair to say George Osborne has never been the Financial Transaction Tax’s biggest fan. As 11 European countries agreed a 0.01%-0.1% tax on shares, bonds and derivatives that will raise an estimated £30bn each year, he made clear that Britain was folding its arms, stamping its foot and refusing to join in.
It’s one thing to dismiss billions in additional revenue, side with your friends in the City and plump instead for the harshest programme of austerity since WWII.
But, clearly feeling his priorities were still not perverse enough, the Chancellor then launched a legal challenge against the European’s proposal, arguing it would be bad for his friends in the City.
George Osborne protested that European’s choosing to tax their financial institutions and their financial products may impact on other countries. Except that is precisely how our own stamp duty on shares works. Of the £3bn this FTT raises the UK Exchequer each year, around 40% of revenue comes from overseas.
In the face of such hypocrisy the Robin Hood Tax campaign launched a petition calling on Osborne to drop the legal challenge.
Over 15,000 people emailed the Treasury, who blocked the emails. We’ll be taking the petition by hand to the Treasury to ensure they get the message.
There have been almost daily attacks against the Financial Transaction Tax in the right of centre press as well, backed up by a slew of ‘reports’ commissioned by the financial sector. We’re taking this as a good sign.
One of the only concrete proposals to emerge post-crisis to ensure ordinary people do not pay for the economic mess is on the verge of becoming reality.
The shame is that Osborne’s opposition means the UK public will miss out on the benefits. Wild-eyed proclamations of the financial sector aside, this proposal is moderate. FTTs already exist not only in the UK, but around the world. Collectively they raise around £25bn a year. They have been implemented by governments of all political hues and in key financial centres such as Hong Kong, South Africa and Brazil.
As the government goes into overdrive to weaken the proposal, so it’s now more than ever they need reminding – the interests of the financial sector do not equate to the interests of society as a whole.