Call for a Financial Transaction Tax

Today, a motion was proposed by the Green Councillors Group seeking Glasgow City Council's support for representation to be made to the UK Government calling for a Financial Transaction Tax (also known as the Tobin Tax) to be explored as soon as possible. 

The levy gets its name from Nobel laureate James Tobin, who proposed it in 1972 as a means of reducing speculation in global markets. Supported by public opinion across Europe, a majority of member states want the financial sector to make a fair and proportional contribution to public finances. It is aiming to ensure that the financial sector makes a fair and substantial contribution to public finances, and to discourage financial transactions which do not contribute to the efficiency of financial markets or of the real economy.

The countries that are developing this tax are at the heart of Europe and include Germany, Belgium, Estonia, Greece, Spain, France, Italy, Austria, Portugal, Slovenia and Slovakia. Most of the remaining countries are supportive and reserve the right to join at a later date. It is only the UK Government which is working to block the tax.

I proposed this motion to push for a change of thinking within the UK Government and it was agreed by all councillors:-

"Glasgow City Council recognises the impact of the UK Coalition Government's public sector and welfare cuts on this City and its residents.

Council believes that the levy of a Financial Transaction Tax on speculative financial transactions could provide a way of raising revenue and mitigating cuts to public services.

Council agrees that the Leader of the Council should make representation to the UK Government calling for the Financial Transaction Tax to be explored at the earliest opportunity."

I hope that this support from councillors at Glasgow City Council will give encouragement to supporters of the Financial Transaction Tax and help build the efforts across Europe to introduce this tax on the financial sector.