Sadiq Khan on collision course with Corbyn over 'MADNESS' financial transaction tax
SADIQ KHAN is set for an almighty clash with Jeremy Corbyn over plans for a tax on financial transactions which the London Mayor has blasted as “madness”.
Ridge grills John McDonnell on Labour's manifesto pledges
The Labour Party said it would raise at least £4.7billion a year from increased charges on City transactions known as the “Robin Hood tax”.
But Mr Khan, who nominated Jeremy Corbyn for the party leadership, recently warned of the crippling affect the plans could have on the capital city.
He said the taxes were “madness” because they would lead people to go “to other parts of the world where there is no financial transaction tax”.
Corbyn and Khan are set for an explosive showdown
The launch did not go quite to plan on Sky News, as he admitted that the policy was "a gamble" given that banks are already threatening to move abroad to Frankfurt and Paris because of Brexit.
But, the left-wing MP said even Europe was forming its own Robin Hood tax policies and the plan was part of Hillary Clinton's platform.
He said: "We’re talking to a tiny fraction more. We are transforming society.
"It’s not about punishing bankers or anything like that, it’s simply correcting the system.
Jeremy Corbyn on the campaign trail
John McDonnell was grilled on the Sophy Ridge show
"We want them to make a contribution, just a fair contribution, very small, just 0.02 per cent."
As part of the plans, firms who pay their bosses more than 20 times the wage of their lowest paid workers would not get government contracts if Labour swept to victory.
Sadiq Khan supported Corbyn in his bid for leadership
Theresa May’s Conservative Party described the plans as a “total shambles”.
And Liberal Democrat Business Secretary Vince Cable attacked Labour’s economy policy was “less Robin Hood than Mickey Mouse”.