House of Lords Papers
Towards a Financial Transaction Tax?
HL 287, Twenty-ninth Report of Session 2010-12
- House of Lords - European Union Committee
- TSO (The Stationery Office)
The Financial Transaction Tax (FTT) proposed by the European Commission is flawed and will fail to fulfil the Commission's own objectives, according to the report 'Towards a Financial Transaction Tax? (HL 287)'. The proposals place the City of London under severe threat and are likely to force financial institutions to relocate away from the UK and the EU as a whole.
Given the strategic importance of the City of London, such relocation would have a highly damaging impact not only for the UK but on the economic health of the EU. A proposal that would have such a disproportionate impact on the UK above all other Member States makes the Commission's proposals particularly unacceptable.
Whilst the Committee acknowledge the strength of public anger against the financial sector, an FTT is the wrong way to meet such demands. The Committee urges the Government to refuse to agree to the Commission's "wholly impractical and unworkable" proposals.
In addition, the Government have stated that, whilst they oppose an EU-wide FTT, they have no objection to a global FTT. The Committee found the Minister's explanation of this position unconvincing.
|Format||Paperback||Published||30 Mar 2012|
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