August 2010

Reflecting on Global Progress

Dear Supporter,
As we head into August and many are off on summer breaks, we want to reflect on
the rollercoaster past few weeks and look forward to the next phase of Stamp Out
Poverty's campaigning that will kick off in September.

Most significantly for us, the Currency Transaction Levy (CTL) has been rising fast
up the political agenda and promises to be a hot topic in coming months. You can
read our brief global roundup below.

International
We took a major step towards the introduction of a CTL when a report
commissioned by a group of 12 countries, including the UK, called for a currency
levy to be implemented to tackle poverty and climate change.

Commissioned by the Taskforce of the Leading Group on Innovative Financing for

Development, the report highlights that a CTL is not only simple to implement, but
that such a tax already exists. Foreign exchange transactions between banks are
nearly all processed via one high-security international computer system (CLS
bank) and this system already collects a per-transaction fee of 22 cents per million
dollars traded.

The release of this report is a big campaign win and we will continue to work
closely with the Leading Group and ensure a clear timetable for its implementation
is set. Click here to read the Guardian article about the report.

In the UK
In the Emergency Budget on 22 June, George Osborne announced a £2.5 billion a
year bank levy. This is far less than the financial sector can afford to pay, however,
the government has already signalled it is prepared to go further, potentially
introducing a tax on excessive bank profits and salaries. This represents a major
opportunity in the coming months.

The Robin Hood Tax campaign

As you know, Stamp Out Poverty has played a central role in the Robin Hood Tax
campaign and we should reflect on the remarkable progress it has made in first few
months of its life. With a Facebook group of more than 200,000, over a million
people having seen the original Bill Nighy film and tens of thousands of emails
reaching MPs, we should be proud of the foundations we have built.

Europe
EU member States are united in calling for levies to be introduced on the financial
sector. A special meeting of EU Finance Ministers will be held in September to
flesh out the details, which follows hot on the heels of the EU Parliament backing
tough new rules on banker bonuses.

United States
The Obama administration is pressing ahead with its plan to introduce a levy on
banks of $9 billion a year. With mid-term elections likely to weaken the Obama
administration in November though, it is not yet a done deal.

On 20 July, Congressman Pete Stark introduced a bill that would put a 0.005% tax
on all foreign exchange transactions by large-scale traders in the US. Called the
'Investing in Our Future Act of 2010’ it would direct tens of billions of dollars to
development and climate change adaptation and mitigation.

The months ahead...

We firmly believe concerted action by the Robin Hood Tax campaign can make the
UK government significantly increase the contribution made by the financial sector
and ensure that this money goes to tackling poverty and climate change.

On the international stage, key events such as the UN MDGs Summit in New York,
the G20 Summit in Seoul and France’s ‘MakePovertyHistory’ year in 2011 (when
they will host both the G8 and the G20), mean there are some important campaign
moments fast approaching.

In short, let’s recharge our batteries so we can redouble our efforts from
September onwards.

Happy holidays,

The Stamp Out Poverty team

 

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