A financial transactions tax just makes good business sense for Britain

Rather than refusing it to rebuild our casino banks, we should create something new and better.

According to Albert Einstein the definition of insanity is “doing the same thing over and over again and expecting different results”. Yet bolstered by today’s improving GDP figures, David Cameron’s government appears set on rebuilding the UK economy around the casino capitalists of the City of London. The financial crisis may have derailed the economy to the extent that as a country we’re still poorer than we were six years ago but let’s just put the old show back on the road again.

This attitude was exemplified by Boris Johnson’s speech to the British Bankers’ Association this week when he invited European banks to come to the UK to avoid the proposed European financial transactions tax (FTT, also knows as a Robin Hood Tax). Nevermind the fact that moving to London would not actually help them evade the tax, the message was clear: the UK wants the same as the financial sector, a return to business (and bonuses) as usual.

Thankfully, MPs on the Business, Innovations and Skills Committee today intruded into the debate calling into question the Government’s position. In their response to the Kay review of UK equity markets and long-term decision making, MPs not only called for the Government to get on with implementing the professor’s recommendations – including a review of merger and acquisition activity – but also called on Cameron and Osborne to think again about their opposition to the FTT.

Their argument does not rest on the moral imperative that the financial sector should repay the damage it has done – something even the Prime Minister and Chancellor are wary of disputing. Instead the Committee makes hard-headed economic arguments for an FTT - that it would curb damaging high frequency trading, the computer-driven casino capitalism that causes flash crashes. It is an argument I have made here previously.

The business case for an FTT is so strong that Vince Cable told MPs that “I am, in some ways, quite disposed to it”. But given the political capital George Osborne and David Cameron have invested in opposing the plans of 11 European countries to press ahead with an FTT, it is difficult to see this Government changing course.

That provides a real opportunity for Labour. Ed Miliband’s themes of "responsible capitalism" and "one nation" could have been adopted with the Robin Hood Tax in mind. What better way of cracking down on the "wild-west" excesses of the market that he condemned in his conference speech two years ago than by levying a tiny tax that will have negligible impact on long-term investment but make financial gambling via high-frequency trading unprofitable?

And what better way of showing that Labour is truly a "one nation party" than by making the Square Mile pay for the damage it has done to the whole of the British economy and at the same time make it less likely that it will be able to wreak such damage in future?

It is hard-headed economic arguments like these which have led the German finance ministry to champion the tax within Europe. And with 11 European countries – including the major economies of France, Germany, Italy and Spain – set to introduce a wide ranging FTT on shares, bonds and derivatives early in 2014, a future Labour government would hardly be leaping into the dark if they followed suit.

Miliband and his Shadow Chancellor Ed Balls have spoken warmly about the Robin Hood Tax and its potential to raise billions to tackle poverty at home and abroad. But like the Government, they have pretended that such a tax must be global (or at least have the support of the US) to work. Given the UK’s own FTT – the 0.5 per cent stamp duty on shares – raises about £3bn annually this is palpable nonsense. It is to be hoped that today’s dose of economic good sense from MPs will encourage them to be a bit bolder.

Not quite a casino bank… Photograph: Getty Images

Jon Slater is a Senior Press Officer for Oxfam and a spokesperson for the Robin Hood Campaign

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“I felt very lonely”: addressing the untold story of isolation among young mothers

With one in five young mothers lonely “all the time”, it’s time for employers and services to step up.

“Despite having my child with me all the time, I felt very lonely,” says Laura Davies. A member of an advisory panel for the Young Women’s Trust, she had her son age 20. Now, with a new report suggesting that one in five young mums “feels lonely all the time”, she’s sharing her story.

Polling commissioned by the Young Women’s Trust has highlighted the isolation that young motherhood can bring. Of course, getting out and about the same as you did before is never easy once there’s a young child in the picture. For young mothers, however, the situation can be particularly difficult.

According to the report, over a quarter of young mothers leave the house just once a week or less, with some leaving just once a month.

Aside from all the usual challenges – like wrestling a colicky infant into their jacket, or pumping milk for the trip with one hand while making sure no-one is crawling into anything dangerous with the other – young mothers are more likely to suffer from a lack of support network, or to lack the confidence to approach mother-baby groups and other organisations designed to help. In fact, some 68 per cent of young mothers said they had felt unwelcome in a parent and toddler group.

Davies paints what research suggests is a common picture.

“Motherhood had alienated me from my past. While all my friends were off forging a future for themselves, I was under a mountain of baby clothes trying to navigate my new life. Our schedules were different and it became hard to find the time.”

“No one ever tells you that when you have a child you will feel an overwhelming sense of love that you cannot describe, but also an overwhelming sense of loneliness when you realise that your life won’t be the same again.

More than half of 16 to 24-year-olds surveyed said that they felt lonelier since becoming a mother, with more than two-thirds saying they had fewer friends than before. Yet making new friends can be hard, too, especially given the judgement young mothers can face. In fact, 73 per cent of young mothers polled said they’d experienced rudeness or unpleasant behaviour when out with their children in public.

As Davies puts it, “Trying to find mum friends when your self-confidence is at rock bottom is daunting. I found it easier to reach out for support online than meet people face to face. Knowing they couldn’t judge me on my age gave me comfort.”

While online support can help, however, loneliness can still become a problem without friends to visit or a workplace to go to. Many young mothers said they would be pleased to go back to work – and would prefer to earn money rather than rely on benefits. After all, typing some invoices, or getting back on the tills, doesn’t just mean a paycheck – it’s also a change to speak to someone old enough to understand the words “type”, “invoice” and “till”.

As Young Women’s Trust chief executive Dr Carole Easton explains, “More support is needed for young mothers who want to work. This could include mentoring to help ease women’s move back into education or employment.”

But mothers going back to work don’t only have to grapple with childcare arrangements, time management and their own self-confidence – they also have to negotiate with employers. Although the 2003 Employment Act introduced the right for parents of young children to apply to work flexibly, there is no obligation for their employer to agree. (Even though 83 per cent of women surveyed by the Young Women’s Trust said flexible hours would help them find secure work, 26 per cent said they had had a request turned down.)

Dr Easton concludes: “The report recommends access to affordable childcare, better support for young women at job centres and advertising jobs on a flexible, part-time or job share basis by default.”

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland