{"id":25417,"date":"2014-07-10T07:49:14","date_gmt":"2014-07-10T06:49:14","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=25417"},"modified":"2014-07-10T07:49:28","modified_gmt":"2014-07-10T06:49:28","slug":"osborne-exposed-his-5-billion-annual-giveaway-to-big-business","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2014\/07\/10\/osborne-exposed-his-5-billion-annual-giveaway-to-big-business\/","title":{"rendered":"Osborne exposed: his \u00c2\u00a35 billion annual giveaway to big business"},"content":{"rendered":"

Earlier this year I wrote a blog about George Osborne's tax giveaway to big business <\/a>suggesting the cost was between \u00a35 and \u00a310 billion a year, depending on the method of calculation used (with all workings provided).<\/p>\n

It was good to find the FT has caught up with this today, with Vanessa Houlder reporting<\/a>:<\/p>\n

\n

The UK government\u2019s aggressive\u00a0cuts to corporation tax\u00a0are costing more than \u00a35bn a year, requiring funding from elsewhere in the Budget at a time of spending cuts.<\/p>\n

Businesses will pay nearly \u00a38bn less corporation tax a year by 2016-17 after UK chancellor\u00a0George Osborne\u00a0pushes through what he terms \u201cthe largest reduction in the burden of corporation tax in our nation\u2019s history\u201d.<\/p>\n<\/blockquote>\n

As she then notes:<\/p>\n

\n

But at a time when painful spending cuts are being inflicted on\u00a0Britain\u2019s public sector<\/a>, some critics are questioning Mr Osborne\u2019s strategy.<\/p>\n

Richard Murphy, a director of Tax Research UK who advises the Trades Union Congress on taxation, says he is unconvinced of the benefits of a strategy that made multinationals like\u00a0Fiat<\/a>\u00a0and\u00a0Pfizer<\/a>\u00a0want to move their holding companies \u2014 but few jobs or operations \u2014 to Britain.<\/p>\n

\u201cIt is attracting financial relocations but not much underlying investment and employment. The cost of achieving it is very high.\u201d<\/p><\/blockquote>\n

Not everyone agrees, of course. I was particularly amused to note that:<\/p>\n

Chris Sanger, global head of tax policy at EY, the professional services firm, believes it is a mistake to blame the rate cuts for falling revenues.<\/p><\/blockquote>\n

They are Chris: look at my workings<\/a>. I suggest it's not possible to offer another explanation in the light of what is happening on the small business tax take.<\/p>\n

And what is more this issue won't go away. Labour has said it will keep the most competitive tax rate in the G7. That still gives plenty of room to correct Osborne's hand out to his chums.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Earlier this year I wrote a blog about George Osborne’s tax giveaway to big business suggesting the cost was between \u00a35 and \u00a310 billion a
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