Tobin Tax 'an excuse for aid failures', says Cameron

THE PRIME MINISTER has accused some European countries of promoting the financial transaction tax as an "excuse for getting out of their aid commitments".

The tax, which imposes an 0.5% levy on all financial transactions, has gained support from the German finance minister and the Archbishop of Canterbury this week. The European Commission has already pledged its support for the tax.

In the House of Commons yesterday, David Cameron (pictured) was asked when he will "listen to both the campaigners outside parliament today and the 80,000 people who have written to him in recent weeks and commit to becoming a leading advocate for the introduction of a 'Robin Hood' tax at the G20 summit later this week?"

Cameron replied that, although there is "widespread support for the principles behind such a tax", it must be adopted on a global basis.

"We must be careful that we do not allow other countries, including some European countries, to use a campaign for the tax, which they know is unlikely to be adopted in the short term, as an excuse for getting out of their aid commitments," he said. "The House and the country can be proud of the fact that we are meeting our aid commitments. Do not let others use the tax as a way getting out of things that they promised."