UK Chancellor slams “suicidal” FTT

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

UK Chancellor slams “suicidal” FTT

eu-logosmall.jpg

UK Chancellor of the Exchequer George Osborne has denounced the European Commission’s plans for a financial transactions tax (FTT) as suicidal for not just the UK, but the EU as well.

The Commission came forward with proposals for an EU-wide FTT in September and the tax has strong support from France and Germany. The UK, however, has always been staunchly opposed and Osborne’s comments show that it has not wavered.

“Proposals for a Europe-only financial transactions tax are a bullet aimed at the heart of London,” Osborne said in article for the Evening Standard newspaper. “The ideas of a tax on mobile financial transactions that did not include America or China would be economic suicide for Britain and for Europe.”

Kevin Cummings, a tax partner at Berwin Leighton Paisner agrees with Osborne’s assertion, arguing that it is not in the UK's interest to be part of a transaction tax that is limited to Europe because the country will take a disproportionate economic hit.

Cummings, however, does believe that the conclusion of the Gates’ report has made the tax much more likely, where previously he had been sceptical of the Commission’s proposals.

“There are few who can argue with Gates' call for countries to sequestrate funds for development causes - and with Bill Gates behind the cause, the prospects of a FTT seeing the light of day turn from merely possible to quite probable,” said Cummings.

Cummings was critical of Gates’s objections to UK opposition to the tax, however.

“I'm not sure Gates' is right to pour cold water on the UK's objection to an FTT on the basis that the UK already has a stamp tax regime for equities - given the much wider base of the FTT (equities, bonds, derivatives, repos and economic equivalents), the comparison is not perhaps a fair one,” said Cummings.

Roger Kaiser, senior adviser for tax and financial reporting at the European Banking Federation, is less confident given the difficulty of EU member states negotiating with third countries to extend the tax.

“There’s no way it’ll happen globally at the moment,” said Kaiser.

more across site & shared bottom lb ros

More from across our site

Countries which care about fair taxation of tech multinationals and equitable global distribution of wealth should back the UN’s tax framework, writes economist Abdelmalek Riad
The cuts disproportionately affected staff in certain positions, the report also found; in other news, MHA announced the €24m acquisition of Baker Tilly South East Europe
The plan aims to improve the efficiency, transparency, and effectiveness of direct tax administration in India
Meanwhile, South Africa’s finance minister has accepted a court decision on suspending a VAT increase and US President Donald Trump mulls a 100% tariff on foreign films
Jaime Carey speaks about the benefits of his tax background, DEI values, the use of AI for a smarter legal practice, and other priorities that will define his presidency
Historically low levels of attrition over consecutive years made a ‘difficult decision’ necessary, PwC has reportedly said
WTS Global is also vetting new potential member firms in Algeria, Cote D’Ivoire and Benin, Kelly Mgbor tells ITR in an exclusive interview
The scope of qualifying pillar two tax credits could reportedly be broadened; in other news, hundreds of IRS appeals staff are to resign
For many taxpayers, the prospect of long-term certainty that a bilateral APA offers can override concerns about time, cost and confidentiality
Levine, who served under the Joe Biden administration, led the US’s negotiations on the OECD’s two-pillar solution
Gift this article