The Labour Party plans to raise billions of pounds for public services by imposing a financial transactions tax, as part of its manifesto for June's General Election.
Proposals include extending the existing 0.5% stamp duty on shares to other financial assets, including bonds and derivatives, the BBC reports. The tax regime would also be expanded to include market makers.
Shadow chancellor John McDonnell described the plans as a "Robin Hood tax" that would "make the financial sector pay its fair share" after the damage caused by the 2007-08 financial crisis. He has been a long-standing supporter of widening the scope of the tax.
He said: "We bailed out the City ten years ago when the crash came, we poured hundreds of billions of pounds into it. Since then £100bn has been given out in bonuses in the City. So we are asking for a small contribution... to fund our public services."
The party claims the new taxes would raise £26bn over the course of the next Parliament and help curb "speculative computer-driven high frequency trading".
However, the plan will not be welcomed by the City, which is already facing headwinds as the UK enters Brexit negotiations with the EU.
City firms have previously argued a 'Robin Hood' tax would be damaging to London as a financial centre, while warning costs would be passed on to consumers.
In response, McDonnell rejected claims the plans would damage the City, saying the tax was "not about punishing bankers or anything like that" but "tackling a couple of loopholes" in the system, according to the BBC.
A broader financial transactions tax is still being discussed by EU member states, but plans have stalled as countries cannot agree on a framework.
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