Gordon Brown says support for transaction tax is gaining momentum

British Prime Minister Gordon Brown has said global support for a transaction tax on banks is on the increase so that taxpayers would not have to bear the brunt of future bailouts.

Speaking on the issue, he said, "I think you will probably see further moves to get an international agreement about some international levy to deal with the responsibility that banks owe to society.”

City minister Lord Myners on Monday met the representatives of the G7, the International Monetary Fund and the World Bank in London to discuss a global deal on reforming the world banking sector.

Global banking sector need to be reformed to avoid the recurrence of the financial crisis of 2008. Lord Myners said that if banks collapse in the future then their owners should pay the price rather than the taxpayer.

Britain has already urged world’s major economies such as France, Germany and the US to consider a tax on financial transactions to make banks more accountable to the taxpayer.

Separately, US President Barack Obama announced he would limit the size of US banks as well as financial firms so that they could never get so big that taxpayer have to bail them out.

Experts believe that a transaction tax on banks is need to discourage them from pursuing risky trading practices.