Support the Robin Hood Tax Campaign
10 October 2011
Interactive Robin Hood Tax video launched (new window)
Campaign Update - 14 September 2011
During the summer progress towards securing a Financial Transaction Tax (FTT) accelerated. In a surprise turnaround, the European Commission now supports a European Union wide FTT, and will release a detailed proposal on how to achieve this in October together with draft legislation. The Commission cites the fact that the UK and other countries already have large FTT’s and it can be designed to counteract the perceived problem of transactions moving overseas and need not be global to work.
In late summer, in the shadow of the ongoing euro crisis, Chancellor Merkel and President Sarkozy announced that they are pressing for a European FTT this autumn, in advance of the G20 in Cannes on 3-4th November. Their finance ministers have sent a detailed letter to the EC outlining the parameters of such a tax. Whilst the EU level is officially the path they are taking, the German finance minister has been clear that he expects that agreement will only be possible at eurozone level or below, given likely UK opposition.
These moves have been greeted with loud disapproval from the usual critics, but more interestingly some serious reflection by the markets as to the differential impact of an FTT on different companies, leading to falls in their share prices.
The EC has proposed the FTT as a way of financing the EC budget. With no support for this from France or Germany this idea unlikely to get anywhere. The suggestion is however a gift to the UK press, as Brussels bureaucrats are almost as unpopular as bankers. There is though a very real threat that FTT revenues are used to prop up the budgets of member states and compensate for bailout costs, and that none of the revenue raised would be used for climate change or development.
Nevertheless President Sarkozy, in a speech the week after the joint Franco-German announcement, again reiterated his belief that the revenue should help fight poverty and climate change. Whether this will be the case will depend a lot on how loud the voices are calling for this. Germany officially remains open to this idea, and is anyway less interested in the revenue than using the FTT tackle speculation. The position of Bill Gates in his report on financing development for the G20 will be absolutely critical. Securing vocal support for the FTT contributing to development and climate change from Brazil, South Africa and other developing countries will be key to helping shame the europeans into not spending all the revenues on themselves.
Intense lobbying and campaigning is needed in the coming weeks. In this volatile economic climate, there are no guarantees, but it is reasonable to say that this is a major opportunity to secure significant financing for development and climate change, and arguably the biggest potential victory since debt cancellation in 2005. We have two months to secure a Robin Hood Tax.
Robin Hood Tax - What is it?
In a nutshell, the big idea behind the Robin Hood Tax is to generate billions of pounds – hopefully even hundreds of billions of pounds. That money will fight poverty in the UK and overseas. It will tackle climate change. And it will come from fairer taxation of the financial sector.
This tiny tax on the financial sector can generate £20 billion annually in the UK alone. That's enough to protect schools and hospitals. Enough to stop massive cuts across the public sector. Enough to build new lives around the world – and to deal with the new climate challenges our world is facing.
The Robin Hood Tax campaign is a coalition of 120 domestic, international, faith-led and environmental organisations with a quarter of a million supporters in the UK, and the endorsement of many economists and celebrities. In the course of a year, the Robin Hood Tax campaign has grown into an international movement with campaigns in 25 countries over five continents: South America, North America, Oceania, Europe and Africa.
The UK government must resist fierce City lobbying and vested interests of a swollen financial sector that caused the largest recession in a generation. The UK government can avoid cutting public services. It can live up to its commitments on meeting the Millennium Development Goals and funding the fight against climate change. It can do this, not by taxing ordinary people through rises such as VAT, but by taxing the very sector that caused the financial and economic crisis. Greater taxation of the financial sector in the UK could raise an additional £20 billion a year. If introduced globally an FTT could raise upwards of £250 billion a year. Raised at this volume and spent in this way it would truly be worthy of the name of: Robin Hood.
The time for this great idea has come with momentum growing for an FTT across the world. As a priority of their G20 presidency, the French government have called for a coalition of willing nations to implement a Financial Transaction Tax. The German government also support a Robin Hood Tax, as do the Spanish and a number of other European nations and are pressing ahead to implement it at the Eurozone level. The opportunity is now.
So it's time for justice. It's time for justice for ordinary families and businesses. For the one in five British families faced with a choice between buying food or paying the heating bill. For the millions of people around the world forced into poverty by a financial crisis they did absolutely nothing to bring about.
The Robin Hood Tax is justice. The banks can afford it. The systems are in place to collect it. It won't affect ordinary members of the public, their bank accounts or their savings. It's fair, it's timely, and it's possible.
Not complicated. Just brilliant.
- Cast your vote for the Robin Hood Tax (new window)
- Contact your MP about the Robin Hood Tax
- Letter sent to David Cameron on the Robin Hood Tax
The short videos below have been produced by the Robin Hood Tax Campaign to promote the idea of the tax. Please circulate this link to all your colleagues and friends!
"The Banker" starring Bill Nighy
