Archbishop Backs Banking Tax

Tax the banks, Archbishop Rowan Williams said yesterday in what appeared to be an olive branch to campers after last week’s eviction uproar.

The head of the Anglican church had until recently refused to comment on the occupation, now nearing its third week in St. Paul’s Square after police barred protesters from the privately-owned Paternoster Square directly outside the exchange.

The cathedral’s threat of legal action last Friday — since dropped — had forced a split in the church between conservative church elders and grassroots groups, as well as an outcry from Christian activists in the camp itself.

But in a column for the Financial Times yesterday Dr Williams discussed the occupation directly for the first time.

The occupation’s aims were still “vague”, he said — but showed “a widespread and deep exasperation with the financial establishment.”

“Many people are frustrated beyond measure at what they see as the disastrous effects of global capitalism; but it isn’t easy to say what we should do differently.”

“It is time we tried to be more specific.”

A ‘Robin Hood’ tax on share, bond and currency transactions – also backed by the Vatican – was one such idea, he said.

Another was splitting retail and trading arms of banks, or more stringent social obligations for banks which receive taxpayer bailouts.

The archbishop’s comments quickly spread to the House of Commons, where Labour MPs lobbed them at prime minister David Cameron during question time.

Cameron said there was “widespread support” for a financial transaction tax — but his government would only back it if adopted “on a global basis.”

The PM’s response echoed that of shadow finance secretary Chris Leslie earlier this year, when Labour’s front bench scuppered legislation penned by Occupy supporter John McDonnell which would have forced the government to investigate a tax on trading of stocks, bonds, currencies and other financial products.

Campaigners have predicted a tax of just 0.05 percent could raise an estimated £20b in Britain alone.

But Leslie slated the amendment, saying the tax needed further investigation so as not to “jeopardise the rejuvenation of a stable and well-balanced financial services sector.”

The amendment fell by 279-25 votes.