A London MP has warned that New York and Singapore are “licking their lips” at the idea of London being hit with a financial transaction tax.
Mark Field was backed by the City of London Corporation which said the tax would have “negative impacts across Europe”.
The European Court of Justice will announce next Wednesday whether the UK’s challenge to the FTT will be thrown out or not.
If it is, as many expect, Mr Field warned that London’s position as a global financial centre could be put at risk. The Tory MP for Cities of London and Westminster said: “Clearly we have to wait for the judgment. But this is a big concern for people in the City.
“I imagine that the people in the US and in Singapore are licking their lips at the prospect of being able to undercut London as a financial centre if the cost of doing business goes up.”
George Osborne has vowed to fight the EU’s plans for an FTT.
Mark Boleat, policy chairman at the City of London Corporation, said: “Regardless of the outcome of the court’s judgment, the UK government is absolutely right to fight for an effective fiscal policy that maintains a level playing field for all EU member states.”
Dr Gerard Lyons, chief economic adviser to the Mayor, said: “Introducing a tax on financial transactions in this way adds to costs, creates uncertainty and threatens the City of London’s global position.”
