G20

Lord Tyrie Excerpts

Monday 7th November 2011 Commons Chamber

[Mr Speaker]

Order. Given the intense interest in this statement and the fact that there are two further statements to follow, brevity is essential.

[Mr Andrew Tyrie (Chichester) (Con)]

The European Commission has estimated that implementation of the financial transactions tax would reduce gross domestic product in the euro area by 1.8%. Of course, that would hit the UK disproportionately hard at a time when we need more growth, not less. Does the Prime Minister agree that, of all times, now is not the appropriate moment to consider such a controversial measure?

[The Prime Minister]

It is important for people to see the European Commission report on the financial transactions tax, which shows the figures that my hon. Friend talks about, and shows that it would cost jobs. As I have said, if we could achieve global agreement for a tax of that nature there would be a case for it, but it is very hard to see that happening. I think that the focus of politicians in Europe should be to meet the promises they have already made about development rather than to hide behind a financial transactions tax that they know is very unlikely to come into being.