15 Apr 2010

URC wants Britain to lead on Robin Hood tax

The United Reformed Church has joined Church leaders and Christian agencies in expressing disappointment that none of the political party manifestos launched this week includes a clear commitment to introducing a unilateral Financial Transaction Tax a so-called Robin Hood Tax in the UK.

The URC, the Salvation Army, Religious Society of Friends (Quakers), Tearfund, CAFOD, and Church Action on Poverty, are all members of the faith group of the UK's Robin Hood Tax campaign. They believe there is a moral imperative for the UK to take the lead, with or without the support of other countries, because it is the right thing to do in the wake of the global financial crisis.

Commenting on the issue, the Revd John Marsh, moderator of the general assembly of the United Reformed Church, says: Whilst we welcome the steps towards bank reform and levies detailed in the election manifestos, we simply don't think they go far enough. We believe the main political parties have missed an historic opportunity by failing to back this simple solution to creating a fairer economic and social contract between financial institutions and the British public. Its popular, its fair and it represents a just distribution of risks and rewards. 

The Robin Hood Tax is a tiny tax on banks, hedge funds and other finance institutions that would raise billions to tackle poverty and climate change, at home and abroad. It could start as low as 0.005 per cent and average 0.05 per cent, but when levied on the vast amount of money that goes round the global finance system every day, through transactions such as foreign exchange, derivatives trading and share deals, it could raise hundreds of billions of pounds every year.

Niall Cooper, national coordinator of Church Action on Poverty said: The moral and economic case for a Robin Hood Tax is clear. Drastic public spending cuts of the kind being discussed by all parties, will make matters far worse for millions of people struggling across the UK and will push thousands more into poverty and debt. To avoid this happening, the Government urgently needs to raise new revenue without damaging individuals or the wider economy. The Robin Hood Tax fits this bill exactly. 

Paul Cook, advocacy director of Tearfund added, This tax is an ethical way of releasing a very small percentage from the largest transactions - but will make a huge difference to some of the worlds poorest communities. 

Chris Bain, director of CAFOD, said: "It would be morally bankrupt to miss this opportunity for a global tax on financial transactions. At a time when the financial crisis has pushed developing countries further back in their fight against poverty, we need financial markets that work for development and not against. A Robin Hood Tax is an important and symbolic step in the right direction."

Tim Stone, public affairs officer for The Salvation Army, commented: "The Financial Transaction Tax is a key element of The Salvation Army's Manifesto for the next Government. The Robin Hood Tax provides a wonderful opportunity to assist those working with the most vulnerable in UK society."

Supporting the call by Christian agencies, the Archbishop of York, John Sentamu concludes: The Robin Hood Tax is an opportunity to make a real difference to the very poor, both here and overseas. I am pleased to add my support to the many church organisations backing this campaign seeking justice on the issue of global poverty.