The report by the Lords committee on Financial and Economic Affairs has claimed that the proposed financial transaction tax would not meet its stated objectives.
Within the report, it is also stated that the introduction of the financial transaction tax would force many of the financial businesses to leave the UK, which in turn would have a “highly damaging impact” on the British economy; which it was announced earlier this week has contracted for two consecutive periods.
The Lords committee has said within their report: “The Government should absolutely not agree to the proposals in their current form.
“There is huge uncertainty about the impact of any financial taxation proposal on the UK and the Government need to redouble their efforts to influence the debate.”
Even if the UK do reject the tax, which George Osborne called “a bullet aimed at the heart of London”, it is set to cost British-based companies as much as 22 billion euros a year and cause 4,500 job losses, according to a recent study.
For more information, please visit www.milsted-langdon.co.uk
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