TUC: Introduce a global transaction tax

A global financial transaction tax could generate £100 billion a year to help governments reduce their deficits, a new report has suggested.

Taxing Banks is being supported by a number of agencies, including the TUC, Christian Aid and Tax Research UK.

It argues that a 0.0005% global levy on derivatives trades would raise some £76 billion a year.

TUC general secretary Brendan Barber noted that the global recession was costing everyone, and banks have continuously said that a transaction tariff would never work.

He added that the report clearly demonstrated that it could be implemented "quickly [and] unilaterally" and that it would create a substantial sum without causing any problems to financial markets.

The so-called 'Robin Hood tax' could go on to raise as much as £250 billion a year to protect public services, fight poverty and tackle climate change, the Independent reports.