Icap boss Spencer's fury over EU transaction tax plans - Telegraph.co.uk

The think tank said that total EU financial transactions amounted to €830trillion and a tax could be imposed at the rate of 0.1pc for bonds and shares and 0.01pc for derivatives. Mr Spencer added: "This is another cynical threat by Sarkozy who knows this tax would overwhelmingly hit London as this is where trillions of dollars are traded each day in foreign exchange, equities, commodities and derivatives markets. It would also be a huge fillip to New York and other centres like Singapore. It could only work if adopted globally."

Martin Callanan, leader of the Conservative MEPs, called on David Cameron to "state categorically that the UK will reject any plans" for the tax.

Last week, Treasury sources signalled that Britain would be prepared to veto such a tax if Paris and Berlin succeed in bringing the plan to a vote among 27 EU members.

The Treasury agreed with protests from UK financiers and politicians that the tax would end up harming the economy. "Any financial transaction tax would have to apply globally, otherwise the transactions covered would simply relocate to countries not applying the tax," a spokesman said.