26th March 2012

The European Commission has published a report claiming that a Financial Transaction Tax (FTT) in the EU would save each member state 50 per cent of its annual contributions to Europe. The Commission's figures suggest that the UK would save more than €7 billion a year.

 

This is nonsense. Most of the burden from a FTT would fall on the City of London. Britain would in fact be a net loser by a massive €30 billion. An FTT would make the UK by far the EU's biggest contributor nation, as well as harming our financial services sector.

 

Mr Barroso may be proud to say an FTT would halve the amount that member states have to pay into the EU - but it would be grossly unfair to shift a huge chunk of that cost onto just one sector of the EU economy based mainly in the UK.

 

If Germany and France want to introduce the FTT then they are welcome to do so. But let us be clear - they are doing that in their own countries, not ours. If they want to tax their own financial services then I say - go ahead, and I look forward to that business moving to the UK.

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