Labour has announced it will introduce a ‘Robin Hood Tax’, which they expect could raise £4.7billion, to invest in public services.
Jeremy Corbyn’s plans are intended to “create a fairer tax system” and raise billions in government revenue.
The party also said it will “undertake the biggest crackdown on tax avoidance in this country’s history” and “bust open the secretive networks of avoidance” that can cost public services billions.
John McDonnell, Labour’s Shadow Chancellor of the Exchequer, said: “The next Labour Government will introduce a ‘Robin Hood Tax’ to make the financial sector pay its fair share after it received huge public bailouts in the crash.
“Ordinary people are still being made to pay by the Tories for a crisis they didn’t cause through the worst spending cuts for generations.
“All we’re asking for is fairness in our tax system. By making those who trade in financial derivatives pay a small fraction of their profits, we can help properly fund our public services.
“Instead of Conservative tax breaks for the super-rich, we’ll put more money in people’s pockets, protect 95% of people from any rises in income tax, National Insurance and VAT, and build a Britain for the many, not the few.”
Labour said that £4.7billion could be raised through a Robin Hood Tax, by modernising the 322-year old stamp duty regime on share trading.
Labour said they want to close down an existing loophole for banks and hedge funds, which the Opposition says is costing the Treasure £1billion a year.
Extending the current tax of 0.5% per transaction could deliver up to £26billion over the course of the next parliament, Labour said.
The Opposition has also pledged to tackle tax dodgers, with such avoidance being an “exclusive club for the global super-rich that working people and small businesses don’t have access to”.
“A dense network of shell companies, secret bank accounts, and governments too happy to look the other way have enabled vast wealth to hoard offshore,” Labour said in a press release.
“Labour will close the loopholes, clamp down on the tax havens, and shine a light on the illicit activities of those super-rich seeking to duck their responsibilities to the rest of society,” the statement said.
“We will put the wealth they try to hide into public service and build an economy for the many, not the few.”