British billionaires hiding cash before Jeremy Corbyn gets elected
Jeremy Corbyn delivers his speech to the Labour Party's annual conference, in Brighton, England, Sept. 27, 2017. | Gareth Fuller / PA via AP

British super-rich are planning to hide cash desperately needed for schools, hospitals, and other public services from an incoming Labour Party government.

According to Tilney Investment Management Services, schemes are being formulated by mean-fisted asset managers and individuals to protect their wealth from reforms that would see Britain’s wealthiest pay their fair share of tax.

The Labour Party blasted such plans, pledging to end the “rigged economy” and invest in public services, saying the party’s economic policies would end austerity and build “a society for the many, not the few.”

Tilney director Jason Hollands said: “The potential election of a hard-left government led by Jeremy Corbyn and John McDonnell is also a factor creating anxiety towards UK investments amongst many of our clients.

“Many of them are nervous about [Corbyn], and that’s something that comes up as we go around the country and do client seminars and through Q&A sessions.”

Britain has one of the lowest rates of corporate tax in the G7 countries, standing at just 21 percent. Only Russia has a lower rate, with 20 percent paid on taxable profits.

The Conservatives plan to slash it to an all-time low of just 18 percent by 2020.

Labour’s 2017 general election manifesto promised that nobody earning under £80,000 ($108,000 USD) would see an increase in income tax, with 95 percent seeing no rise at all.

“Only the top 5 percent of earners will be asked to contribute more in tax to help fund our public services,” it said.

And the party pledged to increase corporate tax for the largest companies so that they pay “a little more,” while keeping it at one of the lowest rates in Europe.

Under the Tories, the economy has stagnated, with growth and productivity targets consistently being missed. A Labour spokesman said: “After seven years of Tory austerity, the prospects for economic growth, productivity, and people’s living standards have all been revised down.

“The next Labour government will provide the major boost to investment that business groups like the Confederation of British Industry and the Federation of Small Businesses have been calling for, protect 95 percent of people from any tax rises and ensure our public services work for people, not profiteers.

“Labour will put an end to the rigged economy that benefits only the super-rich, to build a society that works for the many, not the few.”

Morning Star


CONTRIBUTOR

Steve Sweeney
Steve Sweeney

Steve Sweeney writes for the Morning Star, the socialist daily newspaper published in Great Britain. He is also a People's Assembly National Committee member, patron of the Peace in Kurdistan campaign, and a proud trade unionist.

     

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