Member News
All three main parties have welcomed calls from the International Monetary Fund for a charge on all financial institutions to pay for future banking bail-outs.
In a report sent to G20 nations, yet to published, the IMF called for countries to impose a "financial stability contribution" on all institutions and a "financial activities tax" which would target excess profits and bonuses.
The watchdog's report rules out a financial transactions tax, something marketed by campaigners as a Robin Hood Tax, as impracticable, and likely to cause economic damage by distorting flows of capital around the world.
The proposed taxes were welcomed by chancellor Alistair Darling who said they backed Labour's position that any taxes on the banks should be levied internationally.
"The recognition that banks should make a contribution to the society in which they operate is right," he said.
"Any agreement has to be international and unilateral attempts - as proposed by the Tories - would simply risk being undermined.
"It was the Labour government that first proposed an international levy and we want proposals agreed as soon as possible."
Speaking on the BBC Radio 4 Today programme, shadow chief secretary to the Treasury Philip Hammond welcomed the IMF proposals, adding that his party would use the money raised by a similar tax to help reduce the deficit.
"We have led the way on this debate. We have already committed to introducing a tax on banks," he said. "We are very pleased this report has been published."
Hammond said that the levy should not be set aside for a future crisis, adding that his party believed it was a "tax receipt that should go into the general taxation pot".
Liberal Democrat Treasury spokesperson Vince Cable also welcomed the report.
"Many of the banks are still unwilling to acknowledge the massive debt they owe the taxpayer and that they are still underwritten by our money," he said.
"The Liberal Democrats understand that the old way of banking simply cannot continue and this is a view shared by the IMF."
Have your say...
Please enter your comments below.