This week is Fair Tax Week (6–14 July) and Liberal Democrat Councillor Chris Gloster used the occasion to deliver a motion at Oldham Council (10 July) which called for the Council to sign the Fair Tax Declaration. The successful motion called for action on corporate tax avoidance, making contractors who supply goods and services to public authorities pay their fair share of tax. Councillor Gloster was backed by his colleague, Louie Hamblett, Councillor for Crompton.
Chris, as the Council’s Shadow Cabinet Member for Finance, is a strong believer that businesses should act responsibly and pay their fair share of tax to finance public services. Chris said: “Corporate tax, like personal income tax, funds the essential public services like health, education, policing, social care and highway maintenance we all rely upon. Polling from the Institute for Business Ethics found that corporate tax avoidance has in recent years been the primary concern of the British public when it comes to business conduct. Taxpayers who make their own contribution rightly expect contractors to also pay their fair share in funding public services.”
Tax losses from just one form of tax avoidance, multinational profit-shifting, could be costing the UK some £7bn per annum in lost corporation tax revenues. Consequently, six in ten people feel that public authorities should pay attention to the tax position of any companies with which they engage as an important part of awarding a contract.
Chris added: “Local councils receive and spend a great deal of public money. Much of this money is spent on buying goods and services from private-sector contractors. It is therefore imperative upon us to show good faith with the public by ensuring we only work with contractors who play fair by tax. Some councils have also made investments in companies with a history of tax avoidance or purchases of commercial property from organisations based in tax havens. We should demonstrate our commitment to exemplary tax conduct by refusing to go along with tax dodging in our investments or when buying land and property. Signing this declaration and making these commitments real will show that Oldham Council supports international tax justice.”