To consider the motion submitted by Councillor Wall in accordance with Standing Order No. 21:
“Supporting the Financial Transaction Tax (FTT)
Council notes that:
• between 2015 and 2020 local government will have seen cuts in central grant of 77%;
• extending the current FTT on shares to other asset classes such as bonds and derivatives could raise almost £5bn of additional revenue in the UK a year; and
• at least 11 European nations including France, Germany, Italy and Spain are moving ahead with FTTs on shares, bonds and derivatives estimated to raise £30bn a year.
Council believes that:
• revenues from the FTT could help repair the damage caused by cuts in public services since 2010;
• 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; and that
• whilst an FTT might have a negligible effect on jobs in the City of London, investing FTT revenues in a smart and progressive way would see a significant increase in employment levels in other sectors.
Council resolves that:
• the UK government should extend the current FTT on shares to other asset classes, such as bonds and derivatives.
Council further resolves to:
• write to the Prime Minister, Deputy Prime Minister, Leader of the Opposition, Chancellor and Shadow Chancellor of the Exchequer, and Secretary of State for Communities and Local Government stating this Council’s support for extending FTTs; and
• write to all local MPs outlining the Council’s position.”
Minutes:
It was moved by Councillor Wall and seconded by Councillor T Gilby that:
“Supporting the Financial Transaction Tax (FTT)
Council notes that:
• between 2015 and 2020 local government will have seen cuts in central grant of 77%;
• extending the current FTT on shares to other asset classes such as bonds and derivatives could raise almost £5bn of additional revenue in the UK a year; and
• at least 11 European nations including France, Germany, Italy and Spain are moving ahead with FTTs on shares, bonds and derivatives estimated to raise £30bn a year.
Council believes that:
• revenues from the FTT could help repair the damage caused by cuts in public services since 2010;
• 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; and
• whilst an FTT might have a negligible effect on jobs in the City of London, investing FTT revenues in a smart and progressive way would see a significant increase in employment levels in other sectors.
Council resolves that:
• the UK government should extend the current FTT on shares to other asset classes, such as bonds and derivatives.
Council further resolves to:
• write to the Prime Minister, Leader of the Opposition, Chancellor and Shadow Chancellor of the Exchequer, and Secretary of State for Communities and Local Government stating this Council’s support for extending FTTs; and
• write to all local MPs outlining the Council’s position.”
On being put to the vote the motion was declared carried.