Torfaen to propose ‘Robin Hood Tax to ease cuts’ (From Free Press Series)

Torfaen to propose ‘Robin Hood Tax to ease cuts’

3:20pm Friday 1st March 2013 in News

TORFAEN Council will write to the UK government, urging it to consider implementing the ‘Robin Hood Tax’.

In a motion passed by full council earlier this week, the council agreed to write to the leaders of the three main political parties as well as the chancellor George Osborne, shadow chancellor Ed Balls and local government minister Eric Pickles, stating their support for the tax on financial transactions.

The tax would place a levy of 0.1 per cent for deals on shares and bonds and 0.01 per cent for derivatives transactions within the defined area the tax would be set out to cover.

The European Commission, which proposed instigating the tax across the European Union, estimates it would raise around 30-35bn Euros (£26-£30bn).

In his motion, David Daniels, ward councillor for Llantarnam, said: “Local councils are facing unprecedented financial strains in a period of austerity which are having a real impact on public services, despite the best efforts of the Welsh Government.

“Extending the current FTT on shares to other asset classes such as bonds and derivatives could raise £20bn of additional revenue in the UK a year, Local government deserves to receive a significant proportion of FTT revenues, making an important contribution to both capital and revenue expenditure such as reversing cuts to council tax benefits.”

Torfaen is the first council in Wales to have taken the step and only the second in the UK.

Cllr Daniels said he had been contacted by the Robin Hood tax group on Twitter as part of its campaign to garner local government pressure.

Cllr Daniels, said: “It may seem a bit trivial bringing it to council, but I think anything sensible which could help ease the cuts we are dealing with is worth looking at. I hope other Welsh councils will now follow suit and try to put some pressure on the government.”