The European Commission's proposed tax on transactions between members of the EU appears set to come under scrutiny this week, as a Treasury spokesperson claimed that the UK would "absolutely resist" the measure. The tax, which would raise around £50bn per annum, would come into effect at the start of 2014.
José Manuel Barroso, the president of the Commission, insisted this week that banks must "make a contribution" to rectifying the latest financial difficulties faced by the continent. It is hoped that the proposed levy, which has been described as "a Tobin tax for banks," would go some way to consolidating public finances.
Critics, however, suggest that the UK would bear the brunt of the costs imposed by the system. As reported by the BBC, City of London claim that 80% of the revenues of such a tax would come from London. In light of the comments from the Treasury, it seems unlikely that the UK will accept such a tax unless its scope is truly global.