The banking industry needs to be subject to a financial transaction tax on all flows to compensate for the lack of VAT paid by it.
An accountant doesn’t know the difference between VAT exempt and VAT zero rated?
Plus, a professor of some sort of economics doesn’t know the difference between a transactions tax and a consumption one? Is entirely unaware of tax incidence?
This would be progressive, and at very low rates for most UK households, but should rise in rate as flows increased.
For example, if the rate differs per household income then how is that a tax incident upon the banking industry?
This quite apart from the macroeconomic effect of a financial transactions tax, which is to shrink the economy and thus lower overall tax revenues. Making this a bit redundant:
Additional revenues raised should be used to lower tax rates, most especially for those with lower income. This is not a plan to increase tax rates: it is a plan for a better tax system.
Amazing how ignorant you can be and still teach in the British university system, isn’t it?