Gordon Brown, the British prime minister, rapidly backpedalled from his proposal for a financial transactions tax yesterday after a chorus of criticism of his plan set out in a speech on Saturday to a meeting of global finance ministers.
The US led a backlash against the “Tobin tax” on financial transactions after Mr Brown took a Group of 20 finance ministers' meeting by surprise with his proposal at the gathering in St Andrews, Scotland.
In private briefings, UK officials had initially suggested the transactions tax was the prime minister's preferred mechanism out of the four options he had raised, which included insurance levies and funds to finance future bail-outs.
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