I normally have a lot to shout about Robin Hood. But my evangelism is to promote Nottingham with the City’s best loved (?) son.
Robin Hood taxman to the Bank
Yesterday our local MP Graham Allen tabled a motion in the Houses of Parliament promoting a new Robin Hood tax, I quote in part:
As someone born and bred in Nottingham and one of the City’s Parliamentary representatives it gives me a special pleasure to introduce this short debate on the idea of a “Robin Hood” tax . Remarkably the proposal to debate this issue is so convincing that it has the active support of the current Sheriff of Nottingham.
The social contract between banks and society needs to be re-written, so that banks give something back to the societies they serve and ensure we can live up to our commitments to tackle poverty and climate change, at home and abroad.
A Robin Hood Tax is a timely solution that can tackle, head-on, the major financing challenges we face while renewing the social contract between banks and society. Continuing public anger at the institutions that caused the crisis makes the introduction of the tax not just possible but popular. Reputationally helpful for bankers and politicians
It would be quick to implement and would raise significant funds. The UK could unilaterally introduce a levy on wholesale trades of sterling, no matter where in the world they take place, with the proceeds being captured automatically at the point of settlement. This would raise at least £3 billion a year and would not adversely affect UK trade, as a 0.005% FTT would be comfortably absorbed in the current margins.
So Robin is now being turned into a tax man – something he must surely would have him turning in his grave.
It all sounds very compelling – a tiny tax. With no impact on consumers. £3bn a year for doing nothing. Reputationally helpful for Bankers and Politicians. It also seems to have widespread support judging by the website set up.
On the face of it, it’s probably a good idea. But, we are a nation obsessed with taxation. I do have a concern about this; top rates of income tax for the highest earners are now 50%. National Insurance creeps ever higher – and is nothing short of a stealth tax. VAT has slipped back up to 17.5%. We are told it’s not going to get better. Of course some people just avoid the UK tax system!
I wouldn’t mind all of this if I thought the Government were any good at spending the money they collect. In reality, and in my opinion, they’re not… You don’t have to look far for examples.
