"Robin Hood" tax opt-out could cost £21 billion

The Trade Union Congress (TUC) has today (7 February), warned that any potential opt-out of the "Robin Hood" tax could cost the British taxpayer around £12 billion. This warning comes after Ernst & Young published a report revealing that those within the City would still pay more than half the revenue of an EU-wide financial transactions tax.

The UK Government has long opposed the Robin Hood tax, with prime minister David Cameron reportedly keen to opt out of the initiative. Coalition Government figures have been used the deal, suggesting that the initiative will damage the UK economy and that blocking it is in the best interests of the British public.

However, TUC general secretary Brendan Barber has moved to dismiss this suggestion in the wake of the Ernst & Young findings. "The Government's opt-out means that UK taxpayers will see nothing of the estimated £21billion of new taxes paid by the City, which will instead go straight to EU governments," he said. "Signing the UK up would boost the Robin Hood Tax and raise around £35 billion a year to combat poverty, invest in green jobs and help pay off the deficit."