George Osborne, the Chancellor of the Exchequer, has dismissed claims from the European Union that a tax on financial transactions would raise €57bn per year, estimating that such a levy could in fact raise no additional money for the UK Government.

In a letter today to Andrew Tyrie, chairman of the Treasury Select Committee, Osborne said: "Any gains in direct revenue would be offset by losses in other taxes, including a £3bn per year loss in stamp duty. We would also expect a reduction in corporation tax receipts from the financial service sector due to the impacts of the tax on the sector."