Larry Elliott - Labour's tax on City deals would be a big vote winner

Financial sector is rattled by John McDonnell’s support for an FTT that would raise about £7bn a year

When asked at an event last week if he would support a new plan that would raise an estimated £7bn a year for the exchequer, the shadow chancellor, John McDonnell, had a one-word answer: yes. The proposals were unchallengeable, he said.

That’s not true, obviously. Labour’s plans for a financial transaction tax (FTT) were being challenged even as McDonnell spoke. The City has enormous lobbying power and the machine was quickly cranked into gear. The financial sector employs a million people, paid £75bn in tax last year and provides essential products such as pensions, mortgages and insurance, said Stephen Jones, the chief executive of UK Finance, the trade body for the financial sector.

The Guardian 

Larry Elliott - Labour's tax on City deals would be a big vote winner