‘Robin Hood’ tax on banks should be introduced to reduce national
debt, says Unite
7 June 2010
Progressive taxation rather than cuts to public expenditure
should be actively considered to reduce the national debt, Unite,
the largest union in the country, said today (Monday 7 June).
Unite was responding to David Cameron’s speech today when the
prime minister said that the national debt stood at £770 billion
and public sector services were in the frame for ‘unavoidably
tough’ decisions.
As an alternative to public sector cuts, Unite said the
government should bring in the ‘Robin Hood’ tax on banks, hedge
funds and other financial institutions which would raise billions
to tackle poverty and climate change, at home and abroad.
Gail Cartmail, Unite assistant general secretary for the public
sector, said: ”The people of Britain, who have paid their taxes on
time, should not now have to face cuts to their schools and health
service, while the banks - which contributed so greatly to the
present financial problems - continue on their merry way making
billions in profits and handing out ridiculously high bonuses to
top executives.
”The public sector did not cause the financial crisis. The
bankers, the so-called ‘Masters of the Universe’ did – and they
should now be called to account and made to pay for their
monumental mistakes.”
Gail added: ”The coalition should make the introduction of a
‘Robin Hood’ tax on the financial institutions a priority.
Progressive taxation is the way forward, not axing frontline
services.”
”Such a tax could start as low as 0.005 per cent – and average
0.05 per cent. But when levied on the billions of pounds passing
daily through the global finance system through transactions, such
as foreign exchange and share deals, it could raise hundreds of
billions of pounds annually.
”A majority of the electorate didn’t vote last month for the
drastic public sector cuts now on the cards. The fact that David
Cameron can now consider such swingeing cuts is because of the
u-turn that the Liberal Democrats have done on mitigating public
sector cuts.“
Unite said that recent TUC research showed that 29 per cent of
public expenditure goes directly to the private sector; therefore,
a 10 per cent cut would mean a loss of £16.9 billion to the private
sector and 200,000 jobs.
ENDS
Notes to news editors:
- The Association for Public Service Excellence (APSE) says that
for every £1 of public money invested in public services through
direct employment and purchasing of supplies and services, a
further 64p is generated in the local economy.
For further information, please ring: Gail Cartmail 07768 931 305
or Shaun Noble, communications officer, 020 7420 8951 or 07768 693
940
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