French tax a bonus for UK says London Mayor

A NEW FRENCH tax could see the UK reap benefits said London Mayor Boris Johnson and CEO of British Bankers Association Angela Knight.

Nicolas Sarkozy has announced France would introduce a financial transaction tax, which places a levy on all bond and share sales, in the middle of the year, the Daily Telegraph reports.

However, Johnson (pictured) said the move could see French banks swap Paris for London and would be met with "open arms".

"Bienvenue à Londres. This is the global capital of finance. It's on your doorstep and if your own president does not want the jobs, the opportunities and the economic growth that you generate, we do," he said.

Knight said the transaction tax would "clearly cost jobs" in Paris but added London would benefit from the move.

"They [France] are going to tax business that can easily shift elsewhere. But this is all part of the French political process ahead of an election," she said.