Labour pushes for financial transaction tax

Labour-Supporters-Conference-2012-700x450.jpg

The Labour party says it will raise at least £4.7bn a year through a financial transaction tax set to hit share dealing and derivatives trading.

Shadow chancellor John McDonnell told Sky News yesterday the party was asking for a “small contribution” from the City to help pay for public services.

The revenue would be raised by expanding stamp duty on share transactions to apply to different asset classes such as share options, the Financial Times reports.

McDonnell said: “It’s not about punishing bankers or anything like that, it’s simply tackling a couple of loopholes in the existing system.

“This is a small transactional tax. We are asking a small contribution from the City. You know look – we bailed out the City 10 years ago when the crash came, we poured hundreds of billions of pounds into it.

“Since then £100bn has been given out in bonuses in the City. So we are asking for a small contribution…to fund our public services.”

The tax would be separate from the financial transaction tax being discussed by EU member states.