UK opt-out from Robin Hood Tax could cost taxpayers £21 billion

date: 7 February 2012

embargo: For immediate release

Responding to a report published today (Tuesday) by Ernst and Young, which says that the City would still pay more than half the revenue of an EU-wide financial transactions tax (FTT) or Robin Hood Tax, even if the UK opts out, TUC General Secretary Brendan Barber said:

'Today's report wrecks the government's claim that blocking a Robin Hood Tax, despite the idea's popularity with voters, is in Britain's interests.

'The government's opt-out means that UK taxpayers will see nothing of the estimated £21bn of new taxes paid by the City, which will instead go straight to EU governments.

'Signing the UK up would boost the Robin Hood Tax and raise around £35bn a year to combat poverty, invest in green jobs and help pay off the deficit.

'Instead the Prime Minister is giving away £21bn of UK-generated tax revenues to Europe, just to help the City avoid paying their fair share of tax.'

NOTES TO EDITORS:

- Ernst and Young estimate that the UK would generate around 75 per cent of revenues (£35bn) towards an EU-wide FTT. By opting out of the tax, the UK would still generate around 60 per cent of total tax revenues (£21bn).

- The Ernst and Young report is available at http://www.ey.com/UK/en/Newsroom/News-releases/12-02-06---Bank-lending-to-contract-for-the-first-time-since-2009

- A TUC touchstone blog on the report is available at http://bit.ly/citytax

- All TUC press releases can be found at www.tuc.org.uk

Contacts:

Media enquiries:
Rob Holdsworth T: 020 7467 1372 M: 07717 531150 E: rholdsworth@tuc.org.uk