The Chancellor has made it clear that he would support a ‘world financial transaction tax’ in principle, but claimed that an FTT operating only in Europe would result in the relocation of UK-based business to the United States.
Asked yesterday in the House of Commons to confirm that he will oppose the European Commission’s proposal for a Europe-wide FTT, George Osborne said: ‘ I am not against a financial transaction tax in principle; after all, Britain already has one—the stamp duty on shares. What I am against is a European financial transaction tax that operates only on the European continent and is imposed in Europe.
‘If we can get global agreement, with the United States, China and others, on a world financial transaction tax, all well and good, although I do not think that is terribly likely. If we do not have that, all this business currently conducted in the UK would immediately depart to the United States.
‘We saw the same thing happen when Sweden imposed a financial transaction tax – all the business departed to London. I am therefore against a European financial transaction tax, although, as I say, if we can get global agreement, all well and good.’
The Chancellor has made it clear that he would support a ‘world financial transaction tax’ in principle, but claimed that an FTT operating only in Europe would result in the relocation of UK-based business to the United States.
Asked yesterday in the House of Commons to confirm that he will oppose the European Commission’s proposal for a Europe-wide FTT, George Osborne said: ‘ I am not against a financial transaction tax in principle; after all, Britain already has one—the stamp duty on shares. What I am against is a European financial transaction tax that operates only on the European continent and is imposed in Europe.
‘If we can get global agreement, with the United States, China and others, on a world financial transaction tax, all well and good, although I do not think that is terribly likely. If we do not have that, all this business currently conducted in the UK would immediately depart to the United States.
‘We saw the same thing happen when Sweden imposed a financial transaction tax – all the business departed to London. I am therefore against a European financial transaction tax, although, as I say, if we can get global agreement, all well and good.’
