£26 billion “Robin Hood Tax” on City of London
If it gains power in next month’s General Election, Labour will target the City of London with a “Robin Hood Tax” on financial deals to gather more money for public services. This would pull in £26 billion during the next parliament.
This promise comes after a leak of Labour’s draft manifesto revealed spending plans that include state ownership of railways and a reversal of some welfare reforms, Standard reports.
But the move to target the City is likely to cause a protest amid fears it will undermine the financial sector at a time of uncertainty following the Brexit vote. Already, banks are planning to move jobs to other countries in Europe, so this kind of measure will bring even more resentfulness.
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The Conservatives said it was “madness”, warning it would lead to the loss of jobs and economic growth.
The Labours said they would revise the 322-year-old stamp duty regime on share trading, closing down an existing “loop hole” for banks and hedge funds, and extending it to cover financial “derivatives” and other highly-traded assets.
They also mentioned the plan mirrored the financial transactions tax currently being ready for introduction in 10 European countries.
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