To consider the following Motion submitted by Councillor Maher:
Levy of a Financial Transactions Tax
“This Council notes the suffering forced upon local residents as a result of this Government’s cuts programme and asserts that there is an alternative to its ideologically driven attack on public services – namely the levy of a Financial Transactions Tax (FTT) on the speculative activities that have accelerated the recent enrichment of the few to the detriment of the many.
The Council therefore calls upon Government to enact the FTT and use the revenues from this measure to reverse ongoing shrinkage in central grants to our Council.
This Council believes that:-
· Revenues from the FTT could help repair the damage caused by cuts in public services since 2010;
· Local government deserves to receive a significant proportion of FTT revenues, making an important contribution to both capital and revenue expenditure such as reversing cuts to council tax benefits; and that
· Whilst an FTT might have a negligible effect on jobs in the City of London, investing FTT revenues in a smart and progressive way would see a significant increase in employment levels in other sectors.
This Council resolves that:-
· The UK Government should extend the current FTT on shares to other asset classes, such as bonds and derivatives.
This Council further resolves to:-
· Write to the Prime Minister, Leader of the Opposition, Chancellor and Shadow Chancellor of the Exchequer, and the Secretary of State for Communities and Local Government stating this Council’s support for extending FTTs; and
· Write to all local MPs outlining the Council’s position.”
Minutes:
It was moved by Councillor Maher and seconded by Councillor Murphy:
Levy of a Financial Transactions Tax
“This Council notes the suffering forced upon local residents as a result of this Government’s cuts programme and asserts that there is an alternative to its ideologically driven attack on public services – namely the levy of a Financial Transactions Tax (FTT) on the speculative activities that have accelerated the recent enrichment of the few to the detriment of the many.
The Council therefore calls upon Government to enact the FTT and use the revenues from this measure to reverse ongoing shrinkage in central grants to our Council.
This Council believes that:-
· Revenues from the FTT could help repair the damage caused by cuts in public services since 2010;
· Local government deserves to receive a significant proportion of FTT revenues, making an important contribution to both capital and revenue expenditure such as reversing cuts to council tax benefits; and
· Whilst an FTT might have a negligible effect on jobs in the City of London, investing FTT revenues in a smart and progressive way would see a significant increase in employment levels in other sectors.
This Council resolves that:-
· The UK Government should extend the current FTT on shares to other asset classes, such as bonds and derivatives.
This Council further resolves to:-
· Write to the Prime Minister, Leader of the Opposition, Chancellor and Shadow Chancellor of the Exchequer, and the Secretary of State for Communities and Local Government stating this Council’s support for extending FTTs; and
· Write to all local MPs outlining the Council’s position.”
An
amendment was moved by Councillor Bill Welsh,
seconded by Councillor Shaw that the Motion be amended as
follows;
deletingall of the text in the 3rd bullet point which starts "Whilst an FTT might have a negligible effect on jobs in the City of London..." and substituting the following text:
· “Investing FTT revenues in a smart and progressive way would see a significant increase in employment levels in other sectors apart from the financial sector.”
and insert a 4th bullet point after this, to read as follows:
· “There are concerns that the unilateral extension of the FTT in the UK would have a negative impact on the UK financial sector resulting in its shrinkage and consequent reduction in other tax revenues which might outweigh the gain from the FTT by a significant margin. Therefore to avoid trades moving from the City of London to other global financial centres it is proposed that a common FTT should be negotiated and introduced simultaneously across the main, global financial centres.”
Then following "This Council resolves that:-", changethe text of the bullet point starting "The UK Government should extend the current FTT..." to the following:-
“The UK Government should work with the main, global financial centres to introduce a common FTT which would come into operation at the same time in each centre. This FTT would include trades in shares, bonds and derivatives.
On a show of hands, the Mayor declared that the amendment was lost by 44 votes to 12.
Thereafter, on a show of hands, the Mayor declared that the Motion was carried by 39 votes to 5 with 12 abstentions and it was
RESOLVED:
That the Motion be approved.