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£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.


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.

Claire Reynolds