Ill-defined bank tax a dangerous plan
18 October 2010
SUGGESTED
Press Release
Peter Tompkins and Prof. Philip Booth comment on Lord Hutton's interim report
7 October 2010
Press Release
Mark Littlewood comments on the Comprehensive Spending Review
20 October 2010
Economic Theory
25 June 2024
Mark Littlewood comments on Shadow Chancellor Alan Johnson's speech
In commenting on the Shadow Chancellor’s speech today, Mark Littlewood, Director General at the Institute of Economic Affairs, expresses concern over the false economic arguments being put forward. He said:
“The Shadow Chancellor is wrong to advocate an ill-defined £7.5bn tax on banks. That would weaken the financial services sector by encouraging an acceleration of relocations to other countries. Bankers, stockbrokers and hedge fund managers will continue to leave London if the tax burden becomes uncompetitive.
“The Coalition is right to be seeking to reduce the deficit rapidly. But it could move yet faster by committing to a proper strategy for economic growth. The private sector’s ability to generate new jobs is compromised by the obscenely high regulatory burdens faced by companies operating in Britain. The trend in employment legislation has been towards making it more and more expensive to recruit and retain staff. A bonfire of red tape is needed to free up the labour market and build on the fragile economic recovery.”
Notes to Editors
To arrange an interview with Mark Littlewood, IEA Director General, please contact Stephanie Lis, Communications Manager, 077 5171 7781, 020 7799 8900, slis@iea.org.uk.
“The Shadow Chancellor is wrong to advocate an ill-defined £7.5bn tax on banks. That would weaken the financial services sector by encouraging an acceleration of relocations to other countries. Bankers, stockbrokers and hedge fund managers will continue to leave London if the tax burden becomes uncompetitive.
“The Coalition is right to be seeking to reduce the deficit rapidly. But it could move yet faster by committing to a proper strategy for economic growth. The private sector’s ability to generate new jobs is compromised by the obscenely high regulatory burdens faced by companies operating in Britain. The trend in employment legislation has been towards making it more and more expensive to recruit and retain staff. A bonfire of red tape is needed to free up the labour market and build on the fragile economic recovery.”
Notes to Editors
To arrange an interview with Mark Littlewood, IEA Director General, please contact Stephanie Lis, Communications Manager, 077 5171 7781, 020 7799 8900, slis@iea.org.uk.
SHARE
