Robin Hood Tax
Chuka Umunna has announced his support for the Robin Hood Tax proposing to take 0.05% from all speculative banking transactions. The several hundred billion pounds that it would raise would go towards safeguarding frontline services such as schools and the NHS. The speculative transactions which the tax targets were a major contributor to the global financial crisis.
Chuka has been active in campaigning in this area, calling in November for a windfall on bank profits and a High Pay Commission to curb excessive bank bonuses. In December he joined former Mayor of London Ken Livingstone in signing a letter calling for tougher action on banks including a windfall levy on bonuses, calling for London and Britain’s economy to be less reliant on financial services and advocating a tax on banks’ transactions.
Calls for a new banking tax come against a backdrop of a resurgent banking sector. The Centre for Economics and Business Research announced that banking bonuses rose by 50% in 2009 while Barclays and HSBC announced half-year profits of £3bn.
With Streatham benefiting from Labour investment in schools, colleges and Sure Start Centres, a tax on banking transactions would help continue the good work in the area. Chuka Umunna said:
“Given that the casino-banking was a cause of the global financial crisis, it is only right that the banks help the country out of it.
“A 0.05% tax on speculative banking transactions would help fund and maintain our schools, universities and hospitals, safeguarding and improving public services here in Streatham.”
