The Chairman of the Treasury Select Committee Andrew Tyrie MP has called on the Chancellor of the Exchequer George Osborne to make clear whether an EU-Financial Transaction Tax (FTT) would – taking into account the behavioural response - cause UK revenues to rise or fall.
In the latest of a series of letters between the Treasury Committee Chairman and the Chancellor, the Chairman also sought clarification regarding the effect a eurozone-only FTT might have on the volume of financial services activity in the UK and on UK firms that trade with the eurozone.
Responding to the Chancellor’s comments, the Chairman of the Treasury Committee Andrew Tyrie said:
“It is crucial to establish whether an FTT would – taking all taxes into account – raise any revenue and, if so, how much.
“On the basis of the information in the public domain so far, it is far from clear that it would be a revenue raiser.
“Too many claims and counterclaims are being made about the FTT without the necessary supporting evidence.”
In his initial letter of response, the Chancellor reiterated the Government’s lack of support for an EU-wide FTT whilst also pointing out that many of his European colleagues have expressed similar reservations (see attached documents).