Gordon Brown will be urged by the chief executive of the London Stock Exchange to cancel stamp duty on share purchases, because the move will end up increasing the Exchequer's tax revenue. 

The recommendation from the powerhouse exchange, led by Clara Furse, is set to be made in a document to be submitted to the chancellor ahead of his pre-Budget report.

It is believed that the issue of stamp duty will be a prominent feature of the LSE study, in a bid to sway the chancellor's before the PBR, expected at the end of the month or the early part of December.

The financial institution believed that scrapping the 200-year-old levy would fuel the economy, as the 0.5% tax on the purchase price of a share has been seen as a barrier to equity dealing by the bulk of those involved in the transactions.

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