“We’re all in it together” is the constant message from the government.
Yet the reality is very different. Workers are facing pay freezes or
even cuts, those in need are seeing benefits cut back and services shut
down, prices are rising month on month. Unemployment continues to go up
with women and youth being hit particularly hard. Every survey indicates
that job prospects for the coming year are grim, not least due to the
continued job losses in the public sector.
“We’re all in it together” is the constant message from the government. Yet the reality is very different. Workers are facing pay freezes or even cuts, those in need are seeing benefits cut back and services shut down, prices are rising month on month. Unemployment continues to go up with women and youth being hit particularly hard. Every survey indicates that job prospects for the coming year are grim, not least due to the continued job losses in the public sector.
However, things are very different for big business and the City of London. The Public Accounts Committee at Westminster has issued an official report which confirms that some of the UK’s largest companies are avoiding paying their full tax liability – in some cases thanks to a more than ‘cosy relationship’ they seem to have with the tax authorities (HMRC). For example, Goldman Sachs was officially allowed to “skip” paying a £8 million pound interest bill by HMRC – the real figure they have avoided paying may be much higher. The report goes on to estimate the total tax bill avoided by big business as being around £25 billion – more than enough to pay for a sizeable chunk of public services now under attack.
However, this is not new information. Trade unions have been campaigning for years about how capitalism avoids tax. In 2009, official HMRC data confirmed the known existence of over 14,000 tax avoidance schemes with many more hidden from view. The Guardian newspaper, at the time, asked 100 top companies to state how much Corporation Tax they paid – only two replied. This was no surprise since way back in 2006, the National Audit Office had worked out that 60% of the top UK companies paid between them just £10 million pounds in Corporation Tax with a further 30% avoiding any payment at all. Capitalists can afford to splash out on expensive accountants to fiddle their taxes. After all they know governments and tax offices are only too willing to turn a blind eye. So they avoid taxes, enjoy nice salaries and bonuses and pay fat dividends – no austerity for them! Meanwhile the state hounds working class people for every penny. People who try and get a little extra in benefits are called cheats and hit hard by the same authorities who let big business off with billions in unpaid taxes.
This shows the two-faced character of the system. They exploit us every way they can in defence of their wealth and their continued profits. It is a rotten system that needs to go.
