There are two ways to deal with the hole in the Treasury’s accounts, one is to destroy the lives of vulnerable people who depend on the support from government the other is to ensure that rich companies and individuals pay their way fairly. It came with no surprise that the super-rich Chancellor, backed by a super-rich Cabinet and friends, chose the former.
While some companies continue to ‘accidentally’ make their profits abroad to reduce their tax burden, a loss to the Treasury estimated by the TUC to be around £120 billion, and the banks start to gear up towards a further round of boom and bust with no additional checks, balances or taxes added to their businesses, the provision of essential welfare is slashed and public services crumble.
It is clear that the Coalition Government cuts, which are supported by Labour, will ensure further serious damage to local government spending and our much needed services.
Rather than protecting rich friends, we would ensure that a Financial Transaction Tax not only stabilises the banks’ voracious appetite for risk but brings significant benefits to the economy and we would put an end to off shore tax avoidance. And if the bankers want to leave we will wave them goodbye.
Public services and support for vulnerable people through a fair system of welfare is essential to society. Bankers bonuses and off-shore tax havens are not.