The job of government is raising revenues for public services in a way that encourages enterprise whilst ensuring no one is left behind.
We all have to pay our fair share of taxes if we want good public services. We had to borrow and spend to stave off an economic nosedive. We are seeking to strike a tough balance between keeping the recovery going and starting to address the deficit problem. Steady growth and tough action is the best way to strike that balance.
However, I am also pleased to see that my government is looking at fresh and radical ideas to tackle the economic crisis and raise revenues. For many years, as a senior union leader and then as an MP, I advocated the Tobin Tax.
This was devised in the early 70s by James Tobin who suggested a small tax on currency speculation. This would have raised money and slowed down the pace of often pointless activity. We reckoned it could raise about £20 billion a year.
But public fury with the banks for causing the recession has seen this moderate idea overtaken by a proposal to put a small 0.05% tax on all financial transactions which could raise £250 billion a year worldwide.
Half could be kept by countries where the trade starts and half could boost development and tackle climate change. The UK's share could help plug the deficit gap and avoid some cuts or domestic tax increases.
It's has been embraced by Gordon Brown and various governments. It is on the international agenda and I back a broad-based campaign to see it turned into reality.
The Robin Hood Tax campaign is supported by over 60 respected development, faith, green and poverty groups including Oxfam, the Salvation Army, Friends of the Earth, Barnardo's as well as the TUC. The campaign was launched with great fanfare last week and urges all party leaders to back the tax which will take from the very few for the benefit of the many. I will be supporting it in Parliament.
It's high time that the global banks paid their fair share of taxes for good causes.
Director Richard Curtis (Four Weddings and a Funeral) has produced a superb three minute video on the campaign which can be seen at http://robinhoodtax.org
Newcastle Chronicle and Journal
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