Osborne: FTT would raise no extra cash
Wednesday 21 December 2011 - by Andrew.Hickley@gfsnews.com
Gains raised through the levy would be offset by losses in other taxes, including a £3bn per year fall in stamp duty, as firms migrate their trading away from London, Osborne said.
Osborne has previously argued that if the EU were to introduce the tax alone it would be "economic suicide". Prime Minister David Cameron has likened the levy to asking the French to introduce a tax on wine given the importance of financial services to the UK economy.
Even coalition partner Vince Cable, who serves as business secretary, has withdrawn his support for the FTT.
The UK's support is vital to introduce an EU-wide FTT, given that any proposal to alter tax legislation requires unanimity in the European Council.
Ireland and Holland are among the countries reluctant to introduce a FTT if the UK does not support the levy, given that trades in these countries could easily be transferred to London where they would not be taxed.
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