More than 70 per cent of cash raised by the Financial Transaction Tax (FTT) proposed by the EC would come from the UK, a House of Lords committee has cautioned.
The Lords EU Committee condemned the scheme, arguing that the EC has: "failed to make a case for the tax" as a means of funding its next seven-year budget, to run from 2014-2020. If it were to be initiated, the UK may account for a large percentage of revenue raised due to its sizeable financial sector, said peers.
Proposals for a Europe-wide FTT have been rejected by David Cameron, who says the UK would only join such a levy if it was imposed globally. However, other EU leaders have shown interest in the scheme, most particularly Nicolas Sarkozy, who has said he will introduce it if he wins the upcoming election.
