Clara Furse, London Stock Exchange chief executive, claims it is “not if but when” the UK Government will scrap stamp duty on share transactions.

Furse said: “The question is not if, but when. There has been a significant shift in the Government’s thinking about stamp duty following a recent report by think tank Oxera, which found that the removal of the tax would be revenue-neutral. Trading remains strong with positive momentum carrying forward into the current financial year. The proven international success and increasing efficiency of our market, underline the secular change to equity trading, as TradElect goes live this summer.”

At present, investors are paying 0.5 percent of the value of their transaction when they buy shares. The tax raises around £3 billion ($6 bn) a year for the Treasury.

It appears that the LSE is in discussions with Economic Secretary Ed Balls on how to take the proposal forward.

The Exchange’s headline profits jumped 55% to £186m in the year ended March, on revenues up 20% at £350m.

The Conservatives have already said they would consider scrapping Stamp Duty on shares if they came into power.