Press releases 2002

24 September 2002

London Stock Exchange challenges Treasury
to respond to stamp duty evidence

The London Stock Exchange today challenged the Treasury to end its silence on the harmful effects that stamp duty on share transactions is having on the UK economy.
 
Don Cruickshank, the Exchange's chairman, called for the Treasury to respond to detailed evidence setting out how stamp duty shackles the growth of the UK economy and UK plcs, during his speech to the Energising the Economy conference at the Guildhall, London.  The conference was organised by the Exchange, National Association of Pension Funds and the Corporation of London.

Don Cruickshank said:

"The Treasury has failed to respond to detailed evidence setting out the harmful effects of stamp duty, and the dramatic positive impact abolition would have on the entire UK economy – not just UK financial services.

"Does its silence mean it rejects the detailed evidence setting out the harmful effects of stamp duty on the UK economy?  If so, the Treasury should say so.  If not, it must move to abolish such an unusually damaging tax."

Other speakers at the conference highlighted stamp duty's negative impact on pension funds, how it puts UK industry at a competitive disadvantage, and how other governments, including the US, had recognised this threat by slashing tax on share transactions in recent years.

- ends -