The House of Lords EU Sub-Committee on Financial and Economic Affairs say in its report that the FTT proposed by the European Commission is flawed and will fail to fulfil the Commission’s own objectives. The proposals place the City of London under severe threat and are likely to force financial institutions to relocate away from the UK and the EU as a whole. Given the strategic importance of the City of London, such relocation would have a highly damaging impact not only for the UK but on the economic health of the EU as a whole. A proposal that would have such a disproportionate impact on the UK above all other Member States makes the Commission’s proposals particularly unacceptable. Whilst the Committee acknowledge the strength of public anger against the financial sector an FTT is the wrong way to meet such demands. The Committee urges the Government to refuse to agree to the Commission’s wholly impractical and unworkable proposals. In addition, the Government have stated that, whilst they oppose an EU-wide FTT, they have no objection to a global FTT. The Committee found the Minister’s explanation of this position unconvincing. If the Government’s true position is to oppose an FTT outright, then they should say so.