From the TUC

Investment banks offer pittance to Cameron’s charity instead of paying the tax they all owe us

28 Nov 2010, by in Economics, Environment, International

Wealthy bankers are planning to deter the Government from taking tens of billions off them in tax – or cracking down on outrageous bonuses – by paying a small proportion of that amount to charity. The Daily Mail and the Guardian reported last week that a group of the biggest investment banks (Barclays, HSBC, Lloyds, Royal Bank of Scotland and Santander) were discussing putting money into the Prime Minister’s soon-to-be favourite charity, the Big Society Bank, to forestall the massive tax cuts that they deserve to pay for what they did to the economy, or even the much smaller tax rise that the Government feels is the least it can get away with, or any crack down on bonuses. So here’s a new party game – what tax increase would you like to avoid by paying less than 5% of that sum to  charity? If the big banks get away with this, perhaps George Osborne would be willing to let us off the VAT increase due to hit us all in January if we bought a few more Oxfam goats for Christmas? No, didn’t think so. Sorry, goats.

The Robin Hood Tax campaign, which is calling for taxes on banks to rise by the order of £20bn a year, said this:

Response to bank’s £1.5 billion Big Society deal from the Robin Hood Tax campaign

According to a leaked Whitehall document, banks are in discussion with government to avoid paying new financial sector taxes by striking a deal to use money lying in dormant bank accounts to fund the Big Society bank. David Hillman, spokesperson for the Robin Hood Tax campaign said:

“Financial institutions can’t escape their obligations to society with cheap tricks. They are offering money from other people’s bank accounts when they can afford £20billion a year themselves. It is a re-announcement of an existing government pledge and a cynical marketing ploy.

“This is about fairness – bankers are receiving billions in bonuses whilst VAT rises will hit the poorest hardest. If the banks won’t put their hands in their pockets, the government must do it for them by implementing a £20billion Robin Hood Tax to tackle poverty and climate change at home and abroad.“

4 Responses to Investment banks offer pittance to Cameron’s charity instead of paying the tax they all owe us

  1. Tweets that mention Investment banks offer pittance to Cameron’s charity instead of paying the tax they all owe us | ToUChstone blog: A public policy blog from the TUC — Topsy.com
    Nov 28th 2010, 5:59 pm

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  2. ppi
    Dec 14th 2010, 11:41 am

    I will be surprised at the response that will come from the banks since they have been told to budget for mis sold ppi claims for payment protection insurance that was not required.

  3. house clearance
    Dec 14th 2010, 11:44 am

    I was talking to a banker whilst clearing an office of there’s. They told me that the banks rely on savers for them to keep the business going.
    No money means no investment meaning bank have to find other ways to get money back.

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