UK to 'resist' EU financial tax

THE UK said it will "resist" a financial transaction tax on EU member states proposed by the European Commission.

Under the proposals a tax of 0.1% would be applied to all transactions between financial institutions where at least one was based in the EU, the BBC reports.

However, a spokesman for the UK Treasury said the UK would "absolutely resist" any tax that was not introduced globally.

"We would not do anything that is not in the UK's interests."

City of London officals estimate about 80% of revenues from a Europe-wide financial tax would come from London.

The EU financial tax is likely to raise about €57bn (£50bn) a year and would come into effect in early 2014.

The commission said the tax was "to ensure that the financial sector makes a fair contribution at a time of fiscal consolidation in the member states".

It added that financial businesses were "under-taxed" compared with other sectors.

The Commission said if the UK vetoed the proposal it would still push ahead with it in the Eurozone.