The solution to the recession without cutting public services

The TUC along with Tax Research UK, Tax Justice Network, Christian Aid and the Task Force on Financial Integrity and Economic Development recently submitted a report to the IMF in response to its consultation on the future taxation of the finance sector.

The submission is available here. The document is 60 odd pages and rather technical, but it can be boiled down into quite a simple set of ideas.

The submission reminds the IMF that the bank and the financial services sector caused the current recession - and they can actually be the source of the additional revenue needed to tackle current problems in the economy.

The submission demands the creation of financial transaction taxes. Basically this means a small tax of say 0.05% is levied on all speculative banking transactions. This would raises hundreds of billions of pounds. You can read more about it on the Robin Hood Tax campaign website.

It's an ideal solution as the banks got us into this mess - and they can help get us out of it. And best of all it will ensure that much needed public services are properly funded.