Brown says that agreement on global bank tax is close
Tuesday 06 April 2010
International agreement on a banking tax, designed to safeguard against excessive risk-taking in the financial services sector, is getting closer, the Prime Minister said yesterday.
Any consensus on what Gordon Brown describes as a "global responsibility levy" is not likely to be reached before June's gathering of the G20 in Toronto, however – a month after the general election he is the favourite to lose. Having argued that the financial crisis was caused by a faltering global financial system, the Government has made an international deal the keystone of its banking regulation policy.
Mr Brown's comments come after talks last week with the German Chancellor, Angela Merkel. "Britain, France and Germany have talked about what we do together. We are agreed on the need for a common basis," the Prime Minister said.
Canada, which will host the G20 meeting in June, is also thought to be doubtful that an agreement can be reached before November's G20 gathering, which will be held in Seoul.
The Conservatives are also behind an international agreement, and, like the Government, argue that a unilateral tax would damage the UK's competitiveness. However, last month David Cameron said he would impose a so-called "stability fee" unilaterally if a global deal could not be reached. The Liberal Democrats say that they would impose a 10 per cent tax on banks' profits immediately.
Despite Mr Brown's comments, there are still a number of proposals under consideration on how to tax the banks. The US is thought to favour a charge on wholesale funding, while others would prefer a transaction tax on the deals done by the banks.
There is also disagreement on what to do with the proceeds of a levy. Mrs Merkel is pressing for the revenue to be used to create an insurance fund to be used instead of a state bailout if banks get into difficulties.
Mr Brown has indicated that governments should be able to use the proceeds of any tax in different ways, and thinks that an insurance fund might encourage the banks to return to risky practices, in the knowledge that they could be rescued again.
- 1 Rape threats, death threats and a police investigation after video poking fun at an Islamic Party in Malaysia goes viral
- 2 Katie Hopkins attacked me on Twitter — so I reported her to the police for inciting racial hatred
- 3 Gamers confess the worst things they've done in The Sims
- 4 6-year-old writes ice cold Valentine's card to his stepmother
- 5 Syrian child photographed 'surrendering to camera because she thought it was a gun'
Rape threats, death threats and a police investigation after video poking fun at an Islamic Party in Malaysia goes viral
Why Robin Williams safeguarded himself against a morbid trend in advertising
Ohio Democrat Teresa Fedor speaks out during abortion debate to reveal she has been raped – and is interrupted by laughter from Republicans
Jeremy Clarkson to become 'special adviser on transport' to David Cameron
Exploding head syndrome: One-fifth of US college students suffer from ailment, study finds
Katie Hopkins attacked me on Twitter — so I reported her to the police for inciting racial hatred
Street preacher quoting from the Bible fined for calling homosexuality an 'abomination'
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
Revealed: Putin's army of pro-Kremlin bloggers
Katie Hopkins reported to the police for race hatred by Labour MP Simon Danczuk after tweet about Pakistani men
iJobs Money & Business
£20000 per annum + commission: SThree: Sthree have an exciting opportunity for...
£18000 - £32000 per annum: Recruitment Genius: A Telesales Executive is requir...
£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50,000 - £55,000: Neil Pavier: Are you a professionally qualified commercial ...